BWPT
Contact our analyst Achmadi
Buy
27th April 2026
Last price Rp 133
Target price Rp 186
27th April 2026
Last price Rp 133
Target price Rp 186
Strong Production Growth Supported by Operational Efficiency
In 2025, BWPT maintained solid productivity, supported by sustainable agronomic practices and efficient milling operations. Total production increased 5.42% YoY to 1,427,823 MT, driven by a strong rebound in Q4. CPO production led the growth, rising 17.16% QoQ in Q4 (from −7.98% QoQ in Q3), bringing full-year output to 286,972 MT (+8.84% YoY). PK production also improved, reaching 55,159 MT (+12.13% YoY). Meanwhile, FFB production (including plasma) increased to 1,085,692 MT (+4.24% YoY), while FFB processed rose 10.03% YoY to 1,230,717 MT. Operational efficiency remained strong, as reflected in stable OER and KER at 23.32% and 4.48%, respectively. Looking ahead, we forecast total production to grow 4.40% YoY to 1,490,706 MT in 2026. FFB is expected to increase 4.31% YoY, while CPO and PK are projected to normalize at 5.08% YoY and 2.81% YoY, respectively, with OER and KER improving to 23.92% and 4.50%.
In 2025, BWPT maintained solid productivity, supported by sustainable agronomic practices and efficient milling operations. Total production increased 5.42% YoY to 1,427,823 MT, driven by a strong rebound in Q4. CPO production led the growth, rising 17.16% QoQ in Q4 (from −7.98% QoQ in Q3), bringing full-year output to 286,972 MT (+8.84% YoY). PK production also improved, reaching 55,159 MT (+12.13% YoY). Meanwhile, FFB production (including plasma) increased to 1,085,692 MT (+4.24% YoY), while FFB processed rose 10.03% YoY to 1,230,717 MT. Operational efficiency remained strong, as reflected in stable OER and KER at 23.32% and 4.48%, respectively. Looking ahead, we forecast total production to grow 4.40% YoY to 1,490,706 MT in 2026. FFB is expected to increase 4.31% YoY, while CPO and PK are projected to normalize at 5.08% YoY and 2.81% YoY, respectively, with OER and KER improving to 23.92% and 4.50%.
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Strong Profitability Supported by Volume and Price Growth
In 2025, BWPT delivered strong profitability, with profit attributable to the parent rising 39.01% YoY to IDR 361.72 billion, supported by 33.90% YoY growth in net sales, despite a 36.82% YoY increase in cost of goods sold (COGS).All segments recorded growth, led by PK revenue, which surged 82.52% YoY, followed by CPO (+29.60% YoY) and FFB (+13.97% YoY).The increase in COGS was mainly driven by a 74.37% YoY rise in CPO purchases, along with higher mature upkeep expenses due to accelerated fertilizing activities in Q4 to support long-term productivity. Adjusted EBITDA increased 16.91% YoY, reflecting solid operational performance. We forecast BWPT’s profit attributable to the parent to reach IDR 425.01 billion in 2026 (+17.50% YoY), supported by revenue growth of 10.37% YoY and adjusted EBITDA of IDR 1.84 trillion (+10.22% YoY).
Leverage Improves Amid Ongoing Refinancing Strategy
BWPT’s balance sheet continued to strengthen, with the debt-to-equity ratio (DER) improving to 1.62× from 1.82× in 2024. To further optimize its capital structure, BWPT issued multiple bond and sukuk tranches in March 2026 under its sustainable financing program:
Valuation: 40% Upside, Buy
We revise our 12-month target price to IDR 186 (from IDR 222), implying 40% upside and 5.32× EV/EBITDA. Our valuation is based on a blended DCF and relative valuation approach (70:30 weighting), adjusted to reflect a more conservative stance amid macro uncertainty, while still capturing BWPT’s improving fundamentals. We maintain our BUY recommendation.
In 2025, BWPT delivered strong profitability, with profit attributable to the parent rising 39.01% YoY to IDR 361.72 billion, supported by 33.90% YoY growth in net sales, despite a 36.82% YoY increase in cost of goods sold (COGS).All segments recorded growth, led by PK revenue, which surged 82.52% YoY, followed by CPO (+29.60% YoY) and FFB (+13.97% YoY).The increase in COGS was mainly driven by a 74.37% YoY rise in CPO purchases, along with higher mature upkeep expenses due to accelerated fertilizing activities in Q4 to support long-term productivity. Adjusted EBITDA increased 16.91% YoY, reflecting solid operational performance. We forecast BWPT’s profit attributable to the parent to reach IDR 425.01 billion in 2026 (+17.50% YoY), supported by revenue growth of 10.37% YoY and adjusted EBITDA of IDR 1.84 trillion (+10.22% YoY).
Leverage Improves Amid Ongoing Refinancing Strategy
BWPT’s balance sheet continued to strengthen, with the debt-to-equity ratio (DER) improving to 1.62× from 1.82× in 2024. To further optimize its capital structure, BWPT issued multiple bond and sukuk tranches in March 2026 under its sustainable financing program:
- Obligasi Berkelanjutan I Tahap IV 2026 Total issuance across three series (A, B, and C), with coupons ranging from 8.25% to 11.00%, maturities between 2027 and 2031, and a credit rating of idA- (PEFINDO).
- Sukuk Mudharabah Berkelanjutan I Tahap III 2026 Issued with similar maturity profiles, offering indicative revenue-sharing rates of 8.25%–11.00%, with nisbah ranging from 6.217% to 8.289%, and rated idA-(sy) by PEFINDO.
Valuation: 40% Upside, Buy
We revise our 12-month target price to IDR 186 (from IDR 222), implying 40% upside and 5.32× EV/EBITDA. Our valuation is based on a blended DCF and relative valuation approach (70:30 weighting), adjusted to reflect a more conservative stance amid macro uncertainty, while still capturing BWPT’s improving fundamentals. We maintain our BUY recommendation.
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