Bumitama

Bumitama: Maybank-KE initiates coverage with Buy Call and $1.24 TP. House note that Bumitama (BAL) is an underappreciated and relatively undiscovered, and(BAL) value will rise organically as its young trees mature. BAL has figures that can make heads turn. It is the fastest-growing plantation company in our coverage universe, having planted an average of ~9,700 ha of nucleus area p.a. over the past nine years. Add that plantaions is sizeable (nucleus planted area of 101,182 ha) with young trees (~5 years old) and robust growth (3-year forward FFB output CAGR of 21%). It was also the third most profitable planter in house stock universe in 2012.