First Read: Jalles Machado "Jalles Day: a clear roadmap" (Buy) Enfeldt

Research evidence excerpt

First Read: Jalles Machado "Jalles Day: a clear roadmap" (Buy) Enfeldt

Global Research

3 July 2026ab

First Read

Jalles Machado Equities

Jalles Day: a clear roadmap Brazil

Agriculture

12-month rating Buy

Reaffirming execution while evaluating next steps

We attended Jalles Day at the company's Otavio Lage industrial unit. We left the 12m price target R$3.00

event reassured of the company's commitment to seeking operational efficiency

and cost-cutting, including with innovative technologies. And perhaps more

Price (03 Jul 2026) R$2.15

importantly, with a clearer view of potential next capital allocation steps, which

include a corn ethanol mill under evaluation to be potentially built as an annex to its RIC: JALL3.SA BBG: JALL3 BZ

existing industrial asset, leveraging biomass availability and saving capex related to Trading data and key metrics

support facilities.

52-wk range R$3.89-2.13

Market cap. R$0.65b/US$0.13b

We remain Buy rated on the company seeing the stock trading at an attractive 2.6x Shares o/s 304m (COM)

EV/EBITDA 2026/27E, with earnings expansion ahead as it expands area and

Free float 34%

productivity recovers.

Avg. daily volume ('000) 1,094

Corn ethanol: Jalles has been studying corn ethanol for years and evaluated Avg. daily value (m) R$3

all three units, with all showing economic viability. UOL was identified as the Common s/h equity (03/27E) R$1.91b

most attractive site due to existing industrial infrastructure, two boilers, P/BV (03/27E) 0.3x

steam integration, and the ability to use bagasse as biomass. The project Net debt to EBITDA (03/27E) 3.2x

would also benefit from shared facilities, the existing commercial team, and

potential CO₂ sales. Management highlighted strong feedstock availability, EPS (UBS, diluted) (BRL)