Tuesday, November 15, 2011

First Resources

First Resources: 3Q11 results in-line with bullish estimates. Net profit, +39.1% YoY to US$51.33m, Sales +64.8% to US $145.28m. Co. attributed its strong performance to a combination of higher palm oil prices and sales volumes. Strong rev growth was to increased sales vol and higher prices of CPO and palm kernel for the plantations and palm oil mills segment.

Citi maintain Buy, TP $1.91 from $1.87, adjust FY11-13E earnings upwards by 2.3-2.7% mainly to factor in higher volumes, lower COGS and higher SG&A costs. Also roll forward valuations from Jun 2012 to Dec 2012. With CPO prices on an uptrend lately, grp as a pure CPO play, should benefit.

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