M.P. Evans Group is a UK-listed palm oil producer with a vertically integrated, low-cost model in Indonesia and a strong track record of delivering record revenues, cash flow, and progressive dividends. Recent interims validated MPE’s strategy with an increasing mix of group fruit harvest driving operational gearing resulting in a 117% cash conversion and a 20% rise in the interim dividend to 18p. With estates approaching peak productivity, recent acquisitions expanding scale, and industry-leading ESG credentials, the Group is positioned to generate resilient income and sustainable growth. The demand drivers of population growth, increased urbanisation and GDP, appear positive with continued growth in palm oil demand. From a global perspective, MPE is in our view in a Goldilocks position: Big enough to matter but small enough to be nimble in its core areas. Of the UK-listed Palm Oil players, MPE offers a balanced model of scale and financial strength. We initiate with a BUY and PT of £16.00.
