Menu
Strength
Rapid 2025F sector EPS growth of 26% (2024F: 740%) on the back of expected high average CPO price (+7.2% YoY to MYR 4,500/MT); solid sectoral CPO output growth of c. +3.9% (vs. -3.6% decline in 24F), partly driven by the end of El Niño in May 2024
Opportunity
The implementation of B40 (40% CPO-60% diesel fuel) in January 2025 and B50 (50% CPO-50% diesel fuel) in 2026 is expected to boost domestic CPO consumption, providing upward support for CPO prices
Weakness
Weaker volumes on WTO’s decision to uphold EU restrictions on palm oil use in biofuels which could exacerbate the downtrend in Indonesia’s CPO shipments to several EU countries (Netherlands, Italy, and Spain experienced aggregate -58% drop between 2013-23) and lead to oversupply
Threat
Lower prices due to the lifting of palm oil moratorium which may encourage CPO players to expand planting areas, leading to greater volumes, but higher opex (forest clearing, etc.) and margin pressure
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
