BWPT
Contact our analyst Achmadi
Hold
17th September 2025
Last price Rp 143
Target price Rp 154
17th September 2025
Last price Rp 143
Target price Rp 154
Sustainable Practices Drive Productivity Gains
In 1H-2025, BWPT’s productivity improved following the adoption of sustainable agronomic practices. Fresh Fruit Bunch (FFB) production grew +2.25% YoY to 536,492 MT, while processed FFB rose +9.21% YoY to 606,581 MT. Crude Palm Oil (CPO) and Palm Kernel (PK) output increased +7.29% YoY and +8.03% YoY, respectively. FFB yield from nucleus plantations reached 6.16 MT/Ha, up +1.88% YoY. The Oil Extraction Rate (OER) and Kernel Extraction Rate (KER) remained relatively stable at 23.45% and 4.42%, respectively. By year-end 2025, we forecast FFB production to grow +6.59% YoY, with CPO and PK output rising +16.21% and +9.51% YoY, supported by the Bangkirai Mill expansion in East Kalimantan. OER and KER are projected at 23.48% and 4.13%.
In 1H-2025, BWPT’s productivity improved following the adoption of sustainable agronomic practices. Fresh Fruit Bunch (FFB) production grew +2.25% YoY to 536,492 MT, while processed FFB rose +9.21% YoY to 606,581 MT. Crude Palm Oil (CPO) and Palm Kernel (PK) output increased +7.29% YoY and +8.03% YoY, respectively. FFB yield from nucleus plantations reached 6.16 MT/Ha, up +1.88% YoY. The Oil Extraction Rate (OER) and Kernel Extraction Rate (KER) remained relatively stable at 23.45% and 4.42%, respectively. By year-end 2025, we forecast FFB production to grow +6.59% YoY, with CPO and PK output rising +16.21% and +9.51% YoY, supported by the Bangkirai Mill expansion in East Kalimantan. OER and KER are projected at 23.48% and 4.13%.
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Strong Revenue and Profit Growth
In 1H-2025, BWPT’s net profit attributable to parent rose +43.59% YoY to IDR 171.89 billion, supported by consolidated revenue growth of +38.07% YoY. Segment-wise, CPO revenue grew +31.35% YoY, while PK and FFB revenues surged +116.53% YoY and +69.08% YoY. COGS increased +41.10% YoY, mainly due to higher purchases of FFB (+89.34%) and CPO (+85.42%), as well as an +81.72% YoY rise in mature upkeep costs. EBITDA rose +30.80% YoY to IDR 877.28 billion, with net profit margin strengthening to 6.19% (+24 bps YoY). However, EBITDA margin narrowed -175 bps to 31.57%. For FY-2025, we project net profit attributable to parent of IDR 390.65 billion (+50.13% YoY) and EBITDA of IDR 1.79 trillion (+27.13% YoY).
Improved Solvency with Sukuk Issuance
BWPT’s Debt-to-Equity Ratio (DER) fell to 1.64x in June 2025, from 2.07x a year earlier, as the company reduced bank borrowings and shifted toward capital market financing. Interest-bearing debt declined -10.38% YoY.
On 4 July 2025, BWPT issued Sukuk Mudharabah Berkelanjutan I Tahap I Tahun 2025 worth IDR 62.175 billion, comprising:
•Series A: IDR 37.29 billion, maturing in 370 days, with 3.719% Nisbah and 9.75% revenue sharing.
•Series B: IDR 24.885 billion, maturing in 3 years, with 4.196% Nisbah and 11.00% revenue sharing.
We expect DER to improve further to 1.48x by year-end 2025.
Valuation: HOLD, TP IDR 154 (+7.78% upside)
We revise our recommendation to Hold, with a target price of IDR 154/share. The blended valuation combines DCF (IDR 151/share, 60% weight) and peer comps (IDR 158/share, 40% weight).This implies a forward EV/EBITDA multiple of 4.73x, compared to the current 3.70x, versus a peer average of 5.66x and median of 4.33x.
In 1H-2025, BWPT’s net profit attributable to parent rose +43.59% YoY to IDR 171.89 billion, supported by consolidated revenue growth of +38.07% YoY. Segment-wise, CPO revenue grew +31.35% YoY, while PK and FFB revenues surged +116.53% YoY and +69.08% YoY. COGS increased +41.10% YoY, mainly due to higher purchases of FFB (+89.34%) and CPO (+85.42%), as well as an +81.72% YoY rise in mature upkeep costs. EBITDA rose +30.80% YoY to IDR 877.28 billion, with net profit margin strengthening to 6.19% (+24 bps YoY). However, EBITDA margin narrowed -175 bps to 31.57%. For FY-2025, we project net profit attributable to parent of IDR 390.65 billion (+50.13% YoY) and EBITDA of IDR 1.79 trillion (+27.13% YoY).
Improved Solvency with Sukuk Issuance
BWPT’s Debt-to-Equity Ratio (DER) fell to 1.64x in June 2025, from 2.07x a year earlier, as the company reduced bank borrowings and shifted toward capital market financing. Interest-bearing debt declined -10.38% YoY.
On 4 July 2025, BWPT issued Sukuk Mudharabah Berkelanjutan I Tahap I Tahun 2025 worth IDR 62.175 billion, comprising:
•Series A: IDR 37.29 billion, maturing in 370 days, with 3.719% Nisbah and 9.75% revenue sharing.
•Series B: IDR 24.885 billion, maturing in 3 years, with 4.196% Nisbah and 11.00% revenue sharing.
We expect DER to improve further to 1.48x by year-end 2025.
Valuation: HOLD, TP IDR 154 (+7.78% upside)
We revise our recommendation to Hold, with a target price of IDR 154/share. The blended valuation combines DCF (IDR 151/share, 60% weight) and peer comps (IDR 158/share, 40% weight).This implies a forward EV/EBITDA multiple of 4.73x, compared to the current 3.70x, versus a peer average of 5.66x and median of 4.33x.
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