First Resources

First Resources: UOB Kay Hian maintains Buy with $2.35 TP. House note that the lower qoq and yoy FFB production will likely be due to seasonal factors and oil palm trees in Riau’s estate undergoing the biological stress cycle after two good years of production. But CPO production should rise yoy on higher external crop intake. Production is expected to pick up in 2H13 during the peak production season. House cut 2013 net profit forecast by 20% to factor in lower CPO ASP.