Bumitama Agri

Bumitama Agri: Maybank KE hosted the company on a non-deal roadshow in KL last week. Bumitama remains relatively under-researched as some fund mgrs met the investor relations for the very first time, but were impressed by the group’s operational performance. Bumitama was the third most profitable planter in 2012 in our research universe. Its key attraction is its weighted average tree age profile of just 5.5 yrs, which promises 21% 2012-15 CAGR in FFB output. Amidst flattish CPO price outlook, Bumitama’s robust pdtn growth would be the key earnings driver over the medium term. The house maintains Buy with TP $1.24, on 16x FY14 P/E.