First Resources

First Resources: Announced good Nov11 production Figures. CPO produced at 45,033 tons, +19.4% yoy while Palm Kernel produced at 10,445 tons, +18% yoy. Result brings 9M11 CPO production to 410,186 tons, +20.3% yoy and Palm Kernel at 94,104 tons, +21.5% yoy. High CPO extraction and PL Extraction rate was further maintained, at 23.6% and 5.4%, both flat yoy.

We note that Street has a Unanimous Buy Call on counter with 14 Buy Calls and a mean TP of $1.79, while the stock has generally been quite resilient in wake of the current climate, on back of strong production growth, high FFB and CPO extraction rates and on anticipation that CPO could trend higher by 1H12 (Dorab Mistry forecast at Rm 4,000/ton)