$Bumitama Agri(P8Z.SI)$ : Margin Momentum & Dividend Yield in Focus
📊 Revenue Momentum
1Q25 revenue climbed 19% YoY to IDR 4.59 trillion, driven by resilient benchmark CPO prices and a normalised production base after last year’s supply spike. Management notes the quarter represents the seasonal low-crop period, signalling room for stronger volumes into 2H25.
💹 Profit & Margin Lift
EBITDA surged 36% YoY to IDR 1.01 trillion with margin expanding to 22%, while net profit jumped 51% to IDR 495.9 billion. Improved cost discipline and higher extraction rates cushioned fertiliser-related cost pressures, placing the group ahead of street FY25 run-rate assumptions.
💼 Balance-Sheet Strength
Full repayment of a term-loan facility in March 2024 slashed current liabilities by IDR 1.19 trillion and lifted the group into a small net-cash position by December 2024. This enhances financial flexibility for accelerated replanting and potential downstream moves.
💵 Dividend Upside
Shareholders have approved a final dividend of 5.44 Singapore cents per share, payable 15 May 2025. At the current share price near S$0.76, the ttm dividend yield comes up to roughly 8.7% - one of the highest among mid cap stocks.
🌱 Sustainability & Growth Capex
The 2024 Annual Report outlines plans to replant more than 6,000 hectares per year and install methane-capture facilities. Management expects the twin focus on yield uplift and emissions reduction to deliver lower unit costs and safeguard market access under tightening ESG standards.
🌏 Competitive Landscape
Within SGX’s plantation universe, Bumitama’s FY2024 revenue rose about 12%, with a healthy 16.4% net margin. By comparison, Golden Agri delivered 12% revenue growth but a slimmer 3.3 % margin and Wilmar’s integrated model produced flat revenue growth of 0.3% and a 1.7% margin.
Bumitama’s pure upstream focus makes it more sensitive to CPO prices yet historically more profitable on a per-hectare basis, giving it a leg up versus Wilmar’s downstream diversification and Golden Agri-Resources’ larger but lower-margin estate.
📈 Market Reaction
The stock has advanced 6.9% YTD and 18.4% over twelve months, outperforming the Straits Times Index as investors rotate toward high-yield commodity plays amid sticky inflation and easing bond yields.
📈 Conclusion
Bumitama’s margin rebound, leaner balance sheet and >7% forward dividend yield present an attractive proposition for investors seeking CPO-leveraged returns with disciplined capital distribution. Sustained CPO pricing and execution on sustainability capex remain key catalysts through 2025.
For whom haven't open CBA can know more from below:
🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!
Find out more here：
Comments