Bumitama Agri

Bumitama Agri: 2Q14 preview. On a y/y basis, Bumitama Agri reported highest FFB output growth among planters in Maybank-KE’s coverage. Also, Bumitama, like other Malaysian and Indonesian planters would enjoy from higher spot CPO ASPs. Bumitama, with USD-denominated debt will likely see forex translation losses as the IDR weakened prior to the presidential election, but this is non-cash flow and merely accounting in nature, as these loans are usually long term. Maybank-KE does not rule out that that Bumitama could post a surprise on the upside for 2Q14. Going forward, key upside risk is the development of strong El Nino. Meanwhile Maybank-KE maintains a neutral view in the short term and 1 year fundamental buys are Bumitama (Buy, TP $1.38), First Res (Buy, TP $2.70), Wilmar (Buy, TP $3.94)