Tuesday, September 28, 2010

First Resources

First Resources: Phillip Securities initiates coverage at Buy with $1.33 target. Cites co. as one of purest upstream planters in industry, with the youngest average age amg it’s palm oil trees vs peers. Expect CPO production to increase & yields to improve over nxt few yrs, as bulk of grp’s palm trees approach maturity age. Grp currently trades at 12.7X FY10 EPE vs bigger peers of IndoAgr & GoldenAgr at 16.6X & 13.7X FY10 EPE....

On a separate note, CPO 3-mth futures closed at 16-mth high., with Cargo surveyor SGS reporting CPO exports +15% MoM for the period of 1-25 Sep.

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