SINGAPORE (Feb 21): UOB Kay Hian is maintaining its "Buy" on Bumitama Agri given its young tree-age profile with high oil extraction rate (OER) that can offset low crude palm oil (CPO) average selling price.

But UOB is trimming its target price to 96 cents as it is cutting Bumitama's 2017-19 net profit estimates by 9%, 6% and 9% respectively to factor in lower fresh fruit bunches (FFB) production growth and a higher effective tax rate for 2017.

"We forecast 4Q17 net profit of IDR330 billion–IDR370 billion (S$32 million–S$36 million) which is stronger q-o-q but weaker y-o-y," says analyst...(click on link for full story on theedgesingapore.com)