Kencana Agri Limited (BNE) AI Stock Analysis

• Market Cap: S$67.45M
• Dividend Yield: N/A
• Average Volume (3M): 39.94K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.31
• Revenue Growth: 41.78%
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.04
• Shares Outstanding: 287,011,170
• 10 Day Avg. Volume: 16,500
• 30 Day Avg. Volume: 39,940
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 1.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: S$0.26 ▼(-8.21% Downside)

The score is driven by strong valuation (very low P/E) and solid financial performance (growth, profitability, and cash generation). Technicals are neutral to slightly weak due to a negative MACD and lack of clear momentum, which tempers the overall rating.

Positive Factors

Free cash flow generation

Robust FCF growth (39.48%) and healthy OCF-to-net-income conversion support reinvestment, capex and deleveraging. Sustained cash generation enhances financial flexibility, funds operational improvements or sustainability investments, and provides a buffer through commodity cycles over months.

Low leverage & high ROE

Extremely low leverage combined with a very high ROE indicates efficient capital deployment and conservatively financed operations. This structural setup reduces interest burden, preserves borrowing capacity for strategic needs and improves resilience to revenue volatility over the medium term.

Integrated supply chain & contracts

Vertical integration across cultivation, extraction and refining plus long-term distributor contracts and focus on certified sustainable palm oil strengthen stable revenues and margin capture. This durable positioning supports customer retention and access to premium sustainable markets over time.

Negative Factors

Low equity ratio

A 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 margin

A 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 commodity

Heavy 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.

Kencana Agri Limited Business Overview & Revenue Model

Company Description

Kencana Agri Limited, together with its subsidiaries, operates as a plantation company in Indonesia, Malaysia, and internationally. The company engages in the cultivation of oil palms; and processing of fresh fruit bunches into crude palm oil (CPO), crude palm kernel oil, palm kernel cake, and palm kernel, as well as provision of bulking services. It has oil palm plantations in Sumatra, Kalimantan, and Sulawesi regions of Indonesia. The company is also involved in the wholesale of plantation-related products; and transportation business. It markets and sells its products to trading companies, refineries, and oleochemical companies. The company was founded in 1996 and is based in Jakarta Barat, Indonesia. Kencana Agri Limited is a subsidiary of Kencana Holdings Pte. Ltd.

How the Company Makes Money

Kencana Agri Limited generates revenue primarily through the sale of crude palm oil (CPO) and refined palm oil products. The company has established a robust supply chain that allows it to produce and distribute its products efficiently. Key revenue streams include direct sales to food manufacturers, cosmetic companies, and biofuel producers. Additionally, Kencana Agri benefits from long-term contracts and partnerships with major distributors and retailers, which provide stable income sources. The company's commitment to sustainable practices also opens up opportunities in the growing market for certified sustainable palm oil, further enhancing its revenue potential.

Kencana Agri Limited Financial Statement Overview

Summary

Solid fundamentals: revenue up 8.12% (TTM), strong gross margin (31.58%) and improved net margin (11.35%), plus strong free cash flow growth (39.48%). Balance sheet is mixed—very low debt-to-equity (0.039) and strong ROE (52.53%) but a low equity ratio suggests higher sensitivity to financial swings.

Income Statement

Kencana Agri Limited shows strong revenue growth with an 8.12% increase in TTM, supported by a healthy gross profit margin of 31.58%. The net profit margin improved to 11.35%, indicating enhanced profitability. However, the EBIT margin slightly decreased from the previous year, suggesting some operational challenges.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio to 0.039, reflecting improved financial stability. Return on equity is robust at 52.53%, indicating efficient use of equity. However, the equity ratio remains low, suggesting potential vulnerability to financial fluctuations.

Cash Flow

Free cash flow growth is strong at 39.48%, and the operating cash flow to net income ratio is healthy at 0.67. The free cash flow to net income ratio of 0.76 indicates good cash generation relative to profits. However, the company needs to maintain this momentum to ensure long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	245.44M	153.73M	136.37M	152.54M	128.45M	137.74M
Gross Profit	77.51M	43.34M	26.42M	43.59M	41.16M	48.96M
EBITDA	81.54M	53.81M	30.45M	35.49M	58.30M	55.25M
Net Income	27.87M	11.94M	-283.00K	2.62M	16.80M	5.31M
Balance Sheet
Total Assets	290.32M	288.31M	293.26M	299.56M	334.22M	441.71M
Cash, Cash Equivalents and Short-Term Investments	14.91M	9.39M	3.89M	2.87M	3.38M	18.30M
Total Debt	1.99M	192.36M	188.50M	195.47M	231.31M	329.21M
Total Liabilities	239.69M	247.39M	262.68M	269.02M	303.46M	423.63M
Stockholders Equity	50.63M	40.92M	30.58M	30.53M	30.77M	18.08M
Cash Flow
Free Cash Flow	49.48M	14.26M	22.28M	44.04M	34.04M	23.89M
Operating Cash Flow	64.85M	28.79M	40.33M	54.36M	39.69M	26.46M
Investing Cash Flow	-16.87M	-14.16M	-12.45M	-9.45M	-2.60M	-1.90M
Financing Cash Flow	-34.17M	-8.47M	-27.22M	-44.84M	-37.80M	-35.35M

Kencana Agri Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BNE, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.27, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 52.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:BNE.

Kencana Agri Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5JS	74 Outperform	S$516.48M	5.37	8.46%	2.67%	13.03%	35.10%
BNE	69 Neutral	S$67.45M	2.41	54.02%	―	41.78%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Kencana Agri Limited Corporate Events

Kencana Agri Reshapes Board and Committees With New Non-Executive Director

Kencana Agri Limited has announced forthcoming changes to its board, with Non-Executive Director Darwin Indigo resigning effective 1 January 2026 and Charles Loo Cheau Leong joining the board as a Non-Executive Director on the same date. Loo will also take up roles on the Audit and Risk Management Committee and the Remuneration Committee, reshaping the composition of these governance bodies alongside existing independent and executive directors, in a move that underscores the company’s ongoing refresh of its oversight structure and committee leadership.

The most recent analyst rating on (SG:BNE) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on Kencana Agri Limited stock, see the SG:BNE Stock Forecast page.