$Bumitama Agri(P8Z.SI)$ 2 Target Price with 6.5% Dividend Yield.
Bumitama Agri stock (P8Z.SI) has a P/E ratio of 10.92 and a dividend yield of 6.49%. The ROE and ROA are 20.45% and 13.27%, indicating efficient management. Recent news mentions their inclusion in the MSCI Small Cap Index, which could boost liquidity. They reported strong earnings growth, with a 29% net profit increase.
Key Supporting Points
☆Robust Financial Performance:
Earnings Growth: Q3 2025 results showed a 29% YoY net profit increase to IDR 1.9 trillion, driven by higher palm oil prices and improved production efficiency.
Profitability Metrics: ROE of 20.45% and ROA of 13.27% (as of Dec 6, 2025) highlight operational efficiency.
Attractive Valuation: P/E ratio of 10.92x and dividend yield of 6.49% position it favorably against regional peers.
☆Dividend Policy Shift:
The company revised its dividend payout range to 40–60% (from a max of 40%), supporting a forward yield of ~5%. This aligns with investor demand for income stability amid market volatility.
☆Market Sentiment & Catalysts :
MSCI Inclusion: Added to the MSCI Singapore Small Cap Index in November 2025, potentially attracting institutional inflows.
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