First Resources

First Resources: Strong production momentum continues, with Feb2012 FFB production at 144,095 tons, +32.4% yoy and CPO production at 34,586 tons, +33.4% yoy and Palm Kernel Production at 7,952 tons, +33.9% yoy.

Result brings 2M12 CPO production to 72,155 tons, +27.2% yoy and Palm Kernel to 16,664 tons, +29.3% yoy. Strong momentum led by strong FFB yield which increased to 3.2 tons/ha and slightly higher CPO extraction rate at 23.9% vs 23.5% yoy.

Overall, mkts seem to favour First Resources as the Top Pick in the SG CPO sector with 15 Buy Calls and 1 Hold and a mean TP of $2.16.