STAA continued to deliver solid performance in 3Q25, supported by higher ASP across all segments and stronger contribution from its downstream operations. Revenue reached IDR2.97 trillion (+54.5% QoQ; +72.3% YoY), bringing 9M25 revenue to IDR6.56 trillion (+48.5% YoY) or 78.3% of Phintas estimates and 98.5% of consensus. Strong topline reflect solid performance in PK and PKO segments, which delivered volume growth of +4.5% QoQ and +36.1% QoQ, supported by higher downstream contribution notably from olein (IDR522bn), stearin (IDR88bn), and RBDPO (IDR315bn).

Net profit came in at IDR520 billion (+47.8% QoQ; +27.5% YoY), leading to 9M25 net profit of IDR1.18 trillion, with NPM slightly lower at 17.9% (vs 18.8% in 9M24) due to margin normalization from downstream expansion and higher external FFB processed. Downstream product contribution strengthened, particularly from olein, stearin, and RBDPO, reflecting the initial benefits of STAA’s vertical integration strategy.

The raw material cost increase was driven by a higher portion of external FFB processed, reaching 855k tons (vs 699k tons in 9M24). As a result, COGS surged to IDR1.95 trillion (+47.1% QoQ; +78.2% YoY). Downstream processing costs also spiked to IDR300bn (vs IDR13bn in 2Q25), while CPO and PK processing costs remained the largest component at IDR1.23 trillion (-2.6% QoQ) or 63% of COGS, in line with output allocation toward downstream products.

Looking ahead, CPO industry fundamentals remain supportive, backed by tight supply in Indonesia and Malaysia, resilient domestic demand driven by biodiesel consumption, and improving export access to the European Union. Additionally, the gradual ramp-up in refinery utilization is expected to support topline resilience and margin stabilization going into FY26F.

We downgrade STAA to HOLD (from BUY) with an unchanged TP of IDR1,400, as valuation has reached our previous target. While fundamentals remain solid, the company’s reliance on external FFB may continue to weigh on cost efficiency if prolonged. Upside risks: (1) stronger CPO pricing, (2) faster fertilizer price correction, and (3) higher-than-expected downstream contribution.

By PHINTRACO SEKURITAS | Research

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