- First Resources (SGX:EB5)'s 3Q22 core PATMI beat expectations on strong output, forward sales with higher CPO ASP locked-in previously, export levy exemption since mid-July, and lower-than-expected unit cost of production.
- - Read this at SGinvestors.io -
- BUY First Resources for its attractive valuation and dividend yields.
3Q22 results exceeded our/ consensus expectations
- First Resources's 3Q22 core PATMI of US$116m (+120% y-o-y, +114% q-o-q) brings 9M22 core PATMI to US$254m (+206% y-o-y) which met 109%/100% of our/consensus full-year estimates. 3Q22 revenue rose 15% y-o-y to US$362m (+56% q-o-q) despite lower CPO ASP in the spot market.
- - Read this at SGinvestors.io -
- strong 3Q FFB nucleus output (+12% y-o-y, +20% q-o-q);
- the export levy exemption since mid-July have also boosted margins (though one-off savings) especially for earlier locked in sales;
- net inventory drawdown of 14,000t to lift sales;
- missed fertiliser application (i.e. lower expenses); and (6) to a lesser extent lower-than-usual effective tax rates (without specifics).
Nucleus FFB output have peaked in 3Q22
- Read more at SGinvestors.io.
