BWPT
Contact our analyst Achmadi
Buy
12th January 2026
Last price Rp 143
Target price Rp 222
12th January 2026
Last price Rp 143
Target price Rp 222
Resilient Output Supported by Sustainable Practices
In 9M-2025, BWPT’s plantation productivity remained resilient, supported by sustainable agronomic practices despite lingering El Niño effects and elevated rainfall during the year. Fresh Fruit Bunch (FFB) production increased 3.0% YoY to 775,530 MT, while processed FFB rose 13.8% YoY to 916,102 MT. Crude Palm Oil (CPO) and Palm Kernel (PK) output also expanded, up 9.8% YoY and 12.2% YoY, respectively. FFB yield reached 8.89 MT/Ha, while Oil Extraction Rate (OER) and Kernel Extraction Rate (KER) remained stable at 23.32% and 4.45%. For FY-2025, we expect FFB production to decline slightly by 2.3% YoY, mainly reflecting weaker output in Q3-2025. However, CPO and PK output are projected to continue growing by 5.1% YoY and 7.5% YoY, respectively, supported by the Bangkirai Mill expansion in East Kalimantan. OER and KER are forecast to remain stable at 23.31% and 4.45%.
In 9M-2025, BWPT’s plantation productivity remained resilient, supported by sustainable agronomic practices despite lingering El Niño effects and elevated rainfall during the year. Fresh Fruit Bunch (FFB) production increased 3.0% YoY to 775,530 MT, while processed FFB rose 13.8% YoY to 916,102 MT. Crude Palm Oil (CPO) and Palm Kernel (PK) output also expanded, up 9.8% YoY and 12.2% YoY, respectively. FFB yield reached 8.89 MT/Ha, while Oil Extraction Rate (OER) and Kernel Extraction Rate (KER) remained stable at 23.32% and 4.45%. For FY-2025, we expect FFB production to decline slightly by 2.3% YoY, mainly reflecting weaker output in Q3-2025. However, CPO and PK output are projected to continue growing by 5.1% YoY and 7.5% YoY, respectively, supported by the Bangkirai Mill expansion in East Kalimantan. OER and KER are forecast to remain stable at 23.31% and 4.45%.
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Solid Earnings Momentum Continues
BWPT’s profitability strengthened significantly in 9M-2025, with PATMI rising 51.7% YoY to IDR 171.9 billion, supported by strong revenue growth of 43.1% YoY, despite a 47.7% YoY increase in COGS. By segment, CPO revenue grew 37.7% YoY, while PK and FFB revenues surged 106.8% YoY and 35.1% YoY, respectively. Higher COGS was mainly driven by increased purchases of FFB (+89.4% YoY) and CPO (+87.9% YoY). EBITDA rose 34.1% YoY to IDR 1.25 trillion. For FY-2025, we forecast PATMI of IDR 408.64 billion (+57.0% YoY) and EBITDA of IDR 1.71 trillion (+21.6% YoY). Profitability is expected to remain healthy, supported by continued operational improvements and the addition of management consulting services at the parent entity level, as approved at the AGMS in early January 2026.
DER Trends Lower as Financing Mix Shifts
BWPT’s balance sheet continued to strengthen, with the Debt-to-Equity Ratio (DER) improving to 1.50x as of September 2025, from 1.98x a year earlier. This was driven by a shift toward capital market financing, with outstanding bank loans declining 11.5% YoY. We forecast DER to further improve to 1.34x by year-end 2025. On 7 January 2026, BWPT issued Sukuk Mudharabah Berkelanjutan I Tahap II Tahun 2025 amounting to IDR 290 billion and Obligasi Berkelanjutan I Eagle High Plantations Tahap III Tahun 2026 amounting to IDR 210 billion. The Sukuk comprises Series A of IDR 171.7 billion (370 days, 9.75% revenue sharing) and Series B of IDR 118.3 billion (3 years, 11.00% revenue sharing). The bonds comprise Series A of IDR 67.2 billion (370 days, 9.75% fixed coupon) and Series B of IDR 142.8 billion (3 years, 11.00% fixed coupon).
Valuation: BUY, TP IDR 222 (+55% upside)
We raise our 12-month target price to IDR 222 from IDR 143, implying approximately 55% upside from the current share price, equivalent to a valuation of 5.64x EV/EBITDA, broadly in line with the plantation sector median of 5.91x. Our valuation is based on a blended DCF and relative valuation approach (60:40), reflecting current market conditions, forward macro assumptions, and BWPT’s improving fundamentals. We recommend BUY.
BWPT’s profitability strengthened significantly in 9M-2025, with PATMI rising 51.7% YoY to IDR 171.9 billion, supported by strong revenue growth of 43.1% YoY, despite a 47.7% YoY increase in COGS. By segment, CPO revenue grew 37.7% YoY, while PK and FFB revenues surged 106.8% YoY and 35.1% YoY, respectively. Higher COGS was mainly driven by increased purchases of FFB (+89.4% YoY) and CPO (+87.9% YoY). EBITDA rose 34.1% YoY to IDR 1.25 trillion. For FY-2025, we forecast PATMI of IDR 408.64 billion (+57.0% YoY) and EBITDA of IDR 1.71 trillion (+21.6% YoY). Profitability is expected to remain healthy, supported by continued operational improvements and the addition of management consulting services at the parent entity level, as approved at the AGMS in early January 2026.
DER Trends Lower as Financing Mix Shifts
BWPT’s balance sheet continued to strengthen, with the Debt-to-Equity Ratio (DER) improving to 1.50x as of September 2025, from 1.98x a year earlier. This was driven by a shift toward capital market financing, with outstanding bank loans declining 11.5% YoY. We forecast DER to further improve to 1.34x by year-end 2025. On 7 January 2026, BWPT issued Sukuk Mudharabah Berkelanjutan I Tahap II Tahun 2025 amounting to IDR 290 billion and Obligasi Berkelanjutan I Eagle High Plantations Tahap III Tahun 2026 amounting to IDR 210 billion. The Sukuk comprises Series A of IDR 171.7 billion (370 days, 9.75% revenue sharing) and Series B of IDR 118.3 billion (3 years, 11.00% revenue sharing). The bonds comprise Series A of IDR 67.2 billion (370 days, 9.75% fixed coupon) and Series B of IDR 142.8 billion (3 years, 11.00% fixed coupon).
Valuation: BUY, TP IDR 222 (+55% upside)
We raise our 12-month target price to IDR 222 from IDR 143, implying approximately 55% upside from the current share price, equivalent to a valuation of 5.64x EV/EBITDA, broadly in line with the plantation sector median of 5.91x. Our valuation is based on a blended DCF and relative valuation approach (60:40), reflecting current market conditions, forward macro assumptions, and BWPT’s improving fundamentals. We recommend BUY.
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