Low Equity RatioA low equity ratio implies a thin capital base despite low reported debt; this reduces the equity buffer against crop losses, inventory swings or price shocks. Over the medium term, a small equity cushion can magnify downside risk and limit ability to raise capital during stress.
Declining Operating MarginA slight drop in EBIT margin points to operational pressures—cost increases, yield variability or processing inefficiencies. If persistent, margin erosion undermines the company’s ability to convert revenue into operating profits, necessitating efficiency or capex actions to restore structural profitability.
Concentration In Palm Oil CommodityHeavy reliance on CPO and refined palm oil exposes the business to commodity price swings, regulatory shifts and sustainability-driven demand changes. This concentration limits revenue diversification and raises structural earnings volatility and regulatory risk over the coming months.