KGI Securities Thailand expects BBGI's net profit in the second quarter of 2026 to recover to 353 million baht, from a net loss of 40 million baht in the second quarter of 2025, and up 34 percent from the previous quarter. The main driver is the biodiesel business, where revenue is expected to jump 66 percent year-on-year and 40 percent quarter-on-quarter to 4.8 billion baht, following a 39 percent year-on-year and 22 percent quarter-on-quarter increase in sales volume to 115 million liters, after the Ministry of Energy raised the mandatory biodiesel blend from B5 to B7 between March 14 and September 13, 2026. Biodiesel gross margin also got a boost from reduced competition and a higher reference price of 42.3 baht per kilogram. Meanwhile, the ethanol business is expected to see a slight decline in profit from a 2 percent quarter-on-quarter drop in sales volume to 67 million liters. The research team raised its 2026 profit forecast by 88 percent to 990 million baht, and its 2027 forecast by 46 percent to 1.0 billion baht, adjusting ethanol gross margin assumptions for 2026 from 2.5 percent to 10.0 percent, and for 2027 from 3.5 percent to 8.0 percent, reflecting lower molasses costs and improved production efficiency. The target price was raised to 7.00 baht from 5.45 baht, based on a price-to-earnings ratio of 10.0 times, down from 15.0 times to reflect slowing profit growth. The buy recommendation is maintained, with BBGI remaining a standout stock in the energy sector due to strong performance and the start of commercial operations at the SAF plant on May 18, in which BBGI holds a 20 percent stake.
BBGI PCLMinistry of Energy raised mandatory biodiesel blend from B5 to B7, boosting sales volume and revenue.