Bumitama Agri

Bumitama Agri: OSKDMG initiates coverage with Buy Call and $1.16 TP. House note that Bumitama is one of the rare big scale plantation companies who will be able to sustain its earnings this year, thanks to low yield drag and strong production growth. Expect Bumitama to clock in net profit of Rp749.5b this year, based on average CPO price assumption of Rm2,400, and hit Rp1,003.0bn in CY14, assuming a CPO price of MYR2,600. Even if the average CPO price stays flat at MYR2,400 in CY14, the company’s net profit will still go up by 22.3% to IDR916.5bn