PETALING JAYA: BM Greentech Bhd
’s earnings outlook remains positive, supported by higher crude palm oil (CPO) prices and growth opportunities across its water treatment and solar businesses, according to RHB Research.
“The biomass boiler design and manufacturing company is expected to benefit from stronger demand for its biomass boilers, underpinned by firmer CPO prices,” the research house said.
It noted that its CPO price assumptions have been raised to RM4,400 per tonne for 2026 and RM4,300 per tonne for 2027.
“This is mainly attributed to Indonesia’s B50 biodiesel mandate that takes effect on July 1 and is expected to increase palm oil demand by 1.5 million tonnes in 2026,” it said.
RHB Research added that a 93% probability of El Nino during the September to November 2026 period could weigh on palm oil output, providing further support to prices.
Meanwhile, RHB Research said BM Greentech’s water treatment arm is poised to deliver the fastest growth in the coming quarters, driven by rising industrialisation and increasing demand for clean water across industrial estates and data centres.
It raised its financial year 2027 (FY27) to FY29 earnings forecasts by 5.1%, 9.9% and 14.8%, respectively.
