InfoSAWIT, JAKARTA – The strong performance of crude palm oil (CPO) companies in 2025 is expected to continue into 2026, although growth is projected to moderate amid industry challenges.
Several listed palm oil companies recorded significant gains last year. PT Astra Agro Lestari Tbk (AALI), for example, posted a net profit of Rp1.15 trillion in 2025, up 27.83% year-on-year (YoY).
Revenue also rose 31.3% YoY to Rp28.65 trillion, compared to Rp21.82 trillion in 2024.
AALI Director Tingning Sukowignjo attributed the performance to both external and internal factors.
“The average CPO price CIF Rotterdam in 2025 reached US$1,222 per ton, up 13% from US$1,084 per ton in the previous year,” she said, as reported by InfoSAWIT from Kontan.
“From the internal side, sales of CPO and its derivatives increased 13.3% YoY, while kernel-based products rose 15.8% YoY,” management stated.
Other companies reported similar trends. PT PP London Sumatra Indonesia Tbk (LSIP) recorded sales of Rp5.51 trillion, up 21% YoY, with net profit rising 28% to Rp1.89 trillion.
PT Salim Ivomas Pratama Tbk (SIMP) posted revenue of Rp21.06 trillion (+32% YoY) and net profit of Rp2.07 trillion (+33% YoY), while core profit reached Rp2.91 trillion.
PT Triputra Agro Persada Tbk (TAPG) reported revenue of Rp11.40 trillion (+17.89% YoY) and net profit of Rp3.7 trillion (+18.65% YoY).
Meanwhile, PT Sinar Mas Agro Resources and Technology Tbk (SMAR) recorded a sharp 102.23% YoY increase in net profit to Rp2.58 trillion, with revenue reaching Rp86.94 trillion.
Kiwoom Sekuritas Indonesia Equity Research Analyst Abdul Azis Setyo Wibowo noted that high CPO prices were the main driver of performance.
“This was mainly due to tight supply conditions, biodiesel policy (B40), and still-strong export demand,” he said.
Mirae Asset Sekuritas Senior Market Analyst Nafan Aji Gusta added that both global and domestic demand supported prices.
“The B40 policy strengthened domestic demand, allowing companies to benefit from high CPO prices throughout the year,” he said.
However, the 2026 outlook is expected to be mixed with moderate growth. Delays in the B50 program may limit demand growth, while rising operational costs—such as imported fertilizers—pose challenges.
“From a valuation perspective, some stocks remain undervalued, such as LSIP with a PER of around 4.93x,” Azis noted, recommending a buy with a target price of Rp1,450 per share.
Nafan recommends an “accumulative buy” for AALI (target Rp8,700), and “add” ratings for LSIP, TAPG, and SIMP. (T2)
