TAPG - Twin-Powered Growth

KBVS Update
Thursday, 7 May 2026

TAPG – Twin-powered growth
(Initiate BUY; TP: IDR2,500)

* Triputra Agro Persada (TAPG), a leading Indonesian CPO player, offers a dual earnings engine: solid production growth from its predominantly prime‑age estates and a supportive CPO pricing backdrop. Despite a seasonally weak 1Q26, with revenue down -5.0% YoY to IDR2.49 tn (20.3%/19.7% of our/consensus FY26F estimates) and net profit slipping -8.0% YoY to IDR767 bn (18.7%/17.4%), operational quality remained intact, as evidenced by a 1.0ppt YoY improvement in OER to 24.1% on tighter harvest and mill control.

* TAPG manages ~160k ha of palm plantations, with 81.9% in the prime 7–20‑year bracket and an average age of 14.6 years, positioning it as one of Indonesia’s younger large estates. This profile, together with disciplined estate management, is set to lift FY26F FFB output to 3.67mn tonnes (+7.3% YoY) and CPO production to 996k tonnes (+4.6% YoY).

* On the pricing side, Indonesia’s move toward B50 blending and a higher probability of El Niño point to a tighter CPO supply–demand balance and firmer benchmarks, supporting ASPs. Under this backdrop, FY26F revenue is projected to reach IDR12.2tn (+7.3% YoY), with gross profit of IDR4.9tn (+9.3% YoY; GPM 40.2%) and net profit of IDR4.1 tn (+11.2% YoY; NPM 33.6%), reflecting the combined effect of volume growth and supportive prices.

* We initiate our coverage with BUY and DCF-based TP of IDR 2,500 (12.5x FY26F PE), implying 26.9% upside.

Regards,
Adolf Richardo Bagus S - KBVS Research team