BWPT
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Increasing target price to Rp560
January 3rd, 2018
Prixe Rp187
Target price Rp560
January 3rd, 2018
Prixe Rp187
Target price Rp560
Still on track for higher production
- We are optimistic BWPT’s production will be higher from the increase in mature area and improved weather.
- We also expect a much better price outlook for 2018 and predict that El-Nino will return later this year causing the price to rise again.
- We maintain our belief profitability is coming for BWPT.
- As of 9M17, BWPT managed to reduce net loss by 30% yoy or 10% QoQ, which showed that a return to profitability is coming soon.
- With improvements in production, CPO prices, and the benefits of the planted area entering prime age, based on 9M17 result we adjust our target price higher.
- TP of IDR. 560/share, reflects a valuation of 9.35x EV/EBITDA & significant potential upside.
Previously
| bwpt_6_november_2017.pdf |
| bwpt_14_september_2017.pdf |
| bwpt_30_may_2017.pdf |