Yuanta recommends buying BCP after SAF project enters commercial operation

Petchsrivichai Enterprise Public Company Limited, or PCE, expects crude palm oil prices in the fourth quarter of 2026 to remain high at 8-9 baht per kilogram, as palm volumes begin to decline while demand from both the biodiesel and cooking oil sectors continues. Pornpipat Prasitsupapol, Deputy Managing Director for Strategy and Organizational Development, said demand for B100 will rise with travel and tourism during the New Year holiday period. In the first eight months of 2026, cumulative palm oil output stood at about 13 million tonnes, down 2 million tonnes from 15 million tonnes in the same period a year earlier, due to dry weather and the El Nino phenomenon, which is expected to keep pressuring cumulative palm output lower throughout 2027. The company is therefore pressing ahead with expanding additional fresh palm fruit buying points beyond its main purchasing point in front of the factory, while using a customer relationship management system and a farmer loyalty program to secure raw material supply and achieve economies of scale. At the same time, the company is reallocating raw materials mainly to the domestic market, reducing crude palm oil export volumes and shifting to processing into B100 to add value. It is also upgrading its refinery with CPO Washing and Double Refine technology to produce high-quality semi-refined palm oil, or High-Quality RBDPO, in line with international food safety standards, with commercial operation scheduled for the second quarter of 2027, paving the way for specialty fats for premium food industry customers.

Petch Srichai Enterprise Public Company Limited, or PCE, is pressing ahead with capacity expansion by ramping up its palm oil crushing plants to complete all three phases. Once fully operational, the plants will have a combined crushing capacity of approximately 4,000-5,000 tons per day, strengthening raw material security and supporting growth in its B100 biodiesel business. Pornpipat Prasitsuppapol, Deputy Managing Director for Strategy and Organizational Development, said that currently the company produces crude palm oil, or CPO, for internal use covering only about 20% of total demand, while the remaining 80% must be purchased externally. This crushing plant expansion will help reduce reliance on external CPO to around 30-40%. At the same time, the company is expanding its palm oil production for consumption from 300 tons per day to 700 tons per day, more than doubling output, and is pushing ahead with expanding its business-to-business, or B2B, customer base while maintaining its key export market of India. Meanwhile, it is studying downstream expansion in the oleochemical industry to add product value and raise profit margins. The company targets sales growth of approximately 10-15% in 2026 compared with the previous year.

Verbio SE outlined its next development phase at its Capital Markets Day in Bitterfeld, marking the commissioning of a new ethenolysis plant for bio-based speciality chemicals as a milestone in the expansion of its renewable-molecule production platform and biorefineries. After years of high investment, the company said its focus is now increasingly on utilizing the capacity it has created, optimizing existing production plants and increasing earnings and cash flow. The event covered the market and competitive positioning of Verbio's existing business divisions, the further development of its business base in the USA, and the commercial ramp-up of its new chemical products. Verbio pointed to the resurgence of biomass as a raw material revitalizing the biofuels market while opening new value-creation opportunities beyond it, including expanded trading activities and additional revenue potential from the utilization and storage of biogenic CO2. Chief Executive Officer Claus Sauter said Verbio has developed over two decades from a biofuel producer into an integrated platform for a wide range of renewable molecules, with the company's twentieth flotation anniversary days away, and that it will now harness that platform's potential to generate value, cash flow and long-term returns for shareholders. Verbio also reaffirmed its commitment to disciplined capital use and a balanced approach between profitable growth, financial stability and sustainable value creation.

Chalush Chinthammit, Chief Executive Officer and Managing Director of Khon Kaen Sugar Industry Public Company Limited, or KSL, said global sugar prices are starting to improve, edging up to around 18 to 19 cents per pound amid a still-tight balance between production and consumption. For the 2026/27 crushing season, which is expected to begin in mid-December 2026, the company forecasts the nationwide sugarcane crush at approximately 85 million tonnes, up from around 80 million tonnes in the previous season, which will allow mills to operate at fuller capacity, lift utilisation rates and reduce unit production costs. KSL's main export markets remain in Asia, namely Indonesia, China, Taiwan and South Korea, while the company is exploring opportunities to expand into new markets, particularly Africa. Beyond sugar, KSL holds a 30% stake in BBGI Public Company Limited, or BBGI, which operates in biofuels and high-value bio-based products, as well as the development of sustainable aviation fuel, or SAF, to create a new S-Curve for the business over the long term.

Uniper agreed to purchase future sustainable aviation fuel from Syzygy Plasmonics' NovaSAF platform under a new supply deal. The NovaSAF agreement is intended to expand Uniper's low-carbon fuel offering for aviation clients under tightening European sustainability rules, adding exposure to renewable and bio-based fuels as policy and airline demand for cleaner jet fuel continues to build. Uniper operates an energy portfolio across Germany, the United Kingdom, Sweden, the rest of Europe, and other regions, so securing access to sustainable aviation fuel connects a low carbon product directly into markets where regulators and airlines are tightening standards on jet fuel emissions. The key proof point for investors is progress on Syzygy's NovaSAF facilities, especially the Uruguay plant expected around 2028, with Uniper expected to disclose contracted SAF volumes, pricing structures and contribution to its low carbon segment once production plans are clarified and the project reaches final investment decision. The deal does not change analyst expectations, which point to pressure on Uniper's revenue and margins over the next few years, but it shows the business leaning into greener commodities that could support more stable profitability over time.