KGI Securities Thailand expects BBGI's net profit to keep rising in the third quarter of 2026 after it hit a new high of 485 million baht in the second quarter, helped by no longer having to book an asset impairment loss of 174 million baht and by recognising the first full quarter of results from the SAF project, in which BBGI holds a 20% stake. It expects the SAF project to contribute profit of about 250 to 300 million baht in the third quarter, assuming the SAF spread narrows to 0.90 to 1.00 US dollars per litre. Ethanol business profit is expected to increase in line with reference prices, but biodiesel profit is expected to decline because of lower gross margins amid weaker refined glycerine prices. On the policy front, the cabinet has appointed Chanthanon Wannakhajorn as the new permanent secretary of the energy ministry, reflecting an intention to link the energy and agricultural sectors and support biofuels. The energy ministry is expected to extend the B7 biodiesel blending measure beyond its expiry on 13 September. KGI Securities maintains a buy rating on BBGI with a target price of 7.50 baht, based on a price-to-earnings ratio of 7.0 times, and picks it as a top stock in the energy sector.
BBGI PCLKGI maintains buy rating with target price 7.50 baht, citing record Q3 profit expectations.
