First Resources

First Resources: UOB Kay Hian maintains Buy with $2.60 TP. House note that FR is the best performing plantation stock on SGX and it has outperformed its purer plantation peers, thanks to its outstanding results despite volatile production and low CPO prices. This is supported by good age profile, high yield from its prime mature areas and stringent cost control. FR’s share price is highly correlated with CPO price as its earnings are still highly sensitive to CPO price despite its downstream exposure.