BWPT
Contact our analyst Achmadi
BUY
8th July 2025
Current price Rp 60
Target price Rp 80
8th July 2025
Current price Rp 60
Target price Rp 80
Extraction Rates Remain Stable Despite Production Weakness
In Q1 2025, BWPT’s productivity improved YoY but declined QoQ. Fresh Fruit Bunch (FFB) production (including plasma) grew +3.72% YoY to 270,907 MT but fell -6.75% QoQ. Crude Palm Oil (CPO) and Palm Kernel (PK) production rose +5.48% YoY and +6.99% YoY, respectively, but declined -4.82% and -5.57% QoQ. Mill efficiency improved QoQ:
In Q1 2025, BWPT’s productivity improved YoY but declined QoQ. Fresh Fruit Bunch (FFB) production (including plasma) grew +3.72% YoY to 270,907 MT but fell -6.75% QoQ. Crude Palm Oil (CPO) and Palm Kernel (PK) production rose +5.48% YoY and +6.99% YoY, respectively, but declined -4.82% and -5.57% QoQ. Mill efficiency improved QoQ:
- Oil Extraction Rate (OER) rose +12 bps QoQ to 23.51%, though down -64 bps YoY
- Kernel Extraction Rate (KER) edged down -1 bps QoQ and -6 bps YoY to 4.36%
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Net Profit Remained Strong
In 2025, BWPT’s profitability remained strong, supported by digitalization and efficiency improvements. Net profit attributable to the parent entity rose by 44.75% YoY to IDR 68.74 billion. This growth was driven by a 35.64% increase in revenue, as all segments recorded robust performance—CPO grew by 28.84% YoY, PK by 125.86% YoY, and FFB by 37.28% YoY. In addition, the company's strategic shift from bank loans to the debt capital market led to a significant 17.89% YoY decline in interest expenses. On the operational side, BWPT’s EBITDA also recorded strong growth of 41.89% YoY. From a profitability perspective, the company posted a net profit margin (NPM) ratio of 5.37%. By the end of 2025, we forecast that BWPT’s net profit attributable to the parent entity will grow further by 35.93% YoY to IDR 353.69 billion, supported by a projected 9.94% YoY increase in revenue. The net profit margin is expected to improve to 8.06%.
Solvency Strengthens with Lower DER and Sukuk Issuance
BWPT’s Debt-to-Equity Ratio (DER) dropped from 2.21x to 1.71x YoY, thanks to reduced bank borrowings and increased use of capital market instruments. Interest-bearing debt fell -13.25% YoY, and bank loans declined -11.99% YoY. On July 4, 2025, BWPT also issued Sukuk Mudharabah worth IDR 62.175 billion as an alternative financing source, called “Sukuk Mudharabah Berkelanjutan I Eagle High Plantations Tahap I Tahun 2025”. It consists of:
Valuation: BUY, 34.13% upside
We maintain our BUY rating with a target price of IDR 80 per share, reflecting:
In 2025, BWPT’s profitability remained strong, supported by digitalization and efficiency improvements. Net profit attributable to the parent entity rose by 44.75% YoY to IDR 68.74 billion. This growth was driven by a 35.64% increase in revenue, as all segments recorded robust performance—CPO grew by 28.84% YoY, PK by 125.86% YoY, and FFB by 37.28% YoY. In addition, the company's strategic shift from bank loans to the debt capital market led to a significant 17.89% YoY decline in interest expenses. On the operational side, BWPT’s EBITDA also recorded strong growth of 41.89% YoY. From a profitability perspective, the company posted a net profit margin (NPM) ratio of 5.37%. By the end of 2025, we forecast that BWPT’s net profit attributable to the parent entity will grow further by 35.93% YoY to IDR 353.69 billion, supported by a projected 9.94% YoY increase in revenue. The net profit margin is expected to improve to 8.06%.
Solvency Strengthens with Lower DER and Sukuk Issuance
BWPT’s Debt-to-Equity Ratio (DER) dropped from 2.21x to 1.71x YoY, thanks to reduced bank borrowings and increased use of capital market instruments. Interest-bearing debt fell -13.25% YoY, and bank loans declined -11.99% YoY. On July 4, 2025, BWPT also issued Sukuk Mudharabah worth IDR 62.175 billion as an alternative financing source, called “Sukuk Mudharabah Berkelanjutan I Eagle High Plantations Tahap I Tahun 2025”. It consists of:
- Series A: IDR 37.29 billion, maturing in 370 days, with a 3.719% Nisbah and 9.75% revenue sharing.
- Series B: IDR 24.885 billion, maturing in 3 years, with a 4.196% Nisbah and 11.00% revenue sharing.
Valuation: BUY, 34.13% upside
We maintain our BUY rating with a target price of IDR 80 per share, reflecting:
- 7.08x PER
- 3.79x EV/EBITDA
- +34.13% potential upside
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