First Resource

First Resource: CIMB maintains O/p with $2.22 TP. House note that First Resources posted a FFB yield of 1.8 tonnes/ha in July, which is the best monthly yield achievement for 2013. House is positive on the pick-up in yield, which is in within expectations. The group will also benefit from the weaker rupiah through lower labour costs. Estimate every 5% depreciation in the rupiah could boost FY13 net profit by 1.5%. House maintain EPS and target price of $2.22, still based on a CY14 P/E of 12.3x (1 s.d. above its mean). Continue to like First Resources for its young and well-managed estates as well as its attractive P/E valuation. It also stands to benefit if the rupiah stays weak relative to the US$.