TBLA Ramps Up Biodiesel Output, Price Target Raised to Rp1,200

JAKARTA, Investortrust.id — PT Tunas Baru Lampung Tbk (TBLA), a major Indonesian agribusiness firm, has drawn fresh optimism from investors after posting strong growth in its biodiesel segment. Backed by surging output and favorable energy policies, Sucor Sekuritas raised its target price for TBLA shares to Rp 1,200, while maintaining a “buy” recommendation.

Sucor analyst Niko Pandowo said the price revision was underpinned by a sharp increase in net profit, which is forecast to reach Rp 840 billion ($51.4 million) this year, up from Rp 700 billion ($42.8 million) in the same period of 2024. The profit growth is expected to continue over the next several years.

The valuation is based on a projected price-to-earnings (P/E) ratio of 8.3 times and an enterprise value to EBITDA (EV/EBITDA) multiple of 5.7 times.

Production Jump Bolsters Outlook

In the first quarter of 2025, TBLA’s biodiesel sales soared to 177,000 kiloliters, marking a 114% year-on-year increase. This was driven by a delivery contract of 809,000 kiloliters for the 2025 fiscal year and the operational launch of a second biodiesel plant.

The company’s annual biodiesel production capacity rose from 315,000 tons to 765,000 tons, with contract-based utilization reaching 82%. This expansion pushed revenue from the biodiesel segment up to Rp 2.6 trillion ($159.2 million), representing a 172% year-on-year increase.

The strong performance from biodiesel helped offset a 37% decline in sugar segment revenue, which fell to Rp1.31 trillion ($80.2 million).

Policy Tailwinds and Dividend Promise

The government’s plan to raise the mandatory biodiesel blend from B40 to B50 by 2026 has further strengthened TBLA’s prospects. Following the implementation of B40, national biodiesel demand rose 13% year-on-year to 15.7 million kiloliters. The proposed B50 policy could lift demand to 19 million kiloliters, directly benefiting producers like TBLA.

Niko noted that TBLA also offers an attractive average dividend yield of 8.2% over the next three years, based on a 40% payout ratio. With capital expenditures for its second biodiesel facility completed in 2024, the company is expected to generate stronger free cash flow, potentially lifting its payout ratio to 60%—which could result in a yield of up to 12.3% in the medium term.