First Resources

First Resources: Production jumped 13.5% m/m (+8.7% y/y) in Jun but UOB Kay Hian expects it to slow down in Jul-Aug due to the fasting month and the long Hari Raya Puasa holidays. While FFB production rose 9.8% y/y in 1H14, house maintains its FFB production growth forecast of 6-8% y/y for 2014 as production in 2H14 should be weaker y/y due to the lagged impact from 2Q13 and 1Q14 drought. First Resources is scheduled to release its 2Q14 results on 13 Aug. House forecasts net profit to rise 5-8% q/q and 25-29% y/y (2Q13: US$37.7m, 1Q14: US$45.0m), buoyed by higher sales volumes from both upstream and downstream to mitigate the impact of lower ASP. House expects management to give a better production outlook guidance in the coming briefing, given better visibility in 2H14 now. UOB Kay Hian maintains BUY with $2.80 TP.