First Resources

First Resources: Good set of full-year results, at the higher end of estimates. 4Q12 rev at US$134.1m, -15% yoy, while net profit at US$73.1m, -6% yoy. Result brings FY12 rev to US$603.4m, +22% yoy and net profit to US$237m, +20.7% yoy. Ebitda margin at 53.5% vs 59.6% yoy. Slowdown in top line for 4Q was primarily due to lower CPO prices. For FY12, Grp’s improved performance in FY12 was primarily due to higher sales vol from its two business segments. Sales vol from the Refinery and Processing segment surged by 58% while sales vol from the Plantations and Palm Oil Mills segment grew by 23.3%. Grp also saw its CPO yield rise at 5.4tons/ha vs 5.2tons/ha yoy, while FFB yield went up to 23 tons/ha vs 22.2tons/ha yoy. During the yr, FR added 14,152 ha of planted oil palms in Indo, growing its total planted area under mgt to 146,403 ha. The Group’s mature plantations produced 14.2% more fresh fruit bunches (FFB) in FY12, which in turn yielded a 16.3% increase in CPO production to 525,831 tons and a 18.4% increase in palm kernel production to 123,129 tons. Going forward, grp will increase its milling capacity in line with the projected growth in FFB production, with the aim of producing one mil tons of CPO annually within the next 5 yrs. The grp has proposed a final div of 2.75c/share, taking full yr payout to 4c/share. (2.1% yield)