Monday, February 14, 2011

First Resources

First Resources: Citi maintains Buy Call with $1.85 TP. Note that CPO prices continue to trend up, hitting a high of RM3,911/t (US$1,283/t) on 10 Feb and are just 7% shy of the March 2008 peak of RM4,203/t. In an environment of higher CPO prices, Grp as a pure CPO play should benefit…..

Tip Improving volume performance (as reflected in its January 2011 statistics) would provide it further support, while higher YoY FFB harvested in Jan11, given subsiding biological tree stress and improving maturity profile, has improved yields in Jan11 from 1.5t/ha from 1.4t/ha YoY.

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