First Resources

First Resources: UOB Kay Hian maintains Buy with $2.30 TP. Note that First Resources FFB production for 7M12 was about 1.16m ton (+19.9% yoy) due to an increase in mature area and higher FFB production from plasma estates. However, mgt is maintaining its 10% production growth target as 2H11 FFB production growth was exceptional strong at 16.6% yoy. Overall, house Maintain BUY and target price of S$2.30, based on 14x 2013F PE, at mid-cycle valuation. FR has always been our favourite due to its balanced age profile with 54% of immature and young oil palm trees to support its future earnings growth.