Bumitama

Bumitama: Results was slightly below street estimates, although 1Q is traditionally the weakest quarter in terms of FFB output. Coupled with low CPO ASP achieved, 1Q13 core net profit of IDR152m (-20% QoQ, -20% YoY). While still early into the year, BAL’s 1Q13 FFB (nucleus) production growth was strong, at +34% y/y, +3% q/q. Its strong production growth will help mitigate the present low CPO ASP. For 1Q13, BAL has increased its total planted area by 2,126 ha (~95% nucleus) to 135,493 ha and maintains its 15,000 ha of new planting target for 2013. Broker ratings as follows: Maybank-KE maintains BUY with unchanged TP of $1.24. UOB Kay Hian maintains Buy with $1.12 TP