First Resources - DBS Research 2023-01-11: Striving Amid Strong Productivity Outlook

- Read this at SGinvestors.io -

We see First Resources's earnings trending lower in 2023 alongside the lower CPO price vis-à-vis that seen in early 2022. We maintain our FY23F earnings forecast of US$205m alongside our CPO price assumption of US$1,125 per MT. As we believe the export levies and taxes will be reintroduced when international prices rebound to above US$900 per MT, we assume CPO prices would average US$850 per MT in the domestic market. We peg First Resources’s selling price at US$1,137 per MT equivalent due to its exposure to refined palm oil products as well as the export market.

First Resources's share price retreat reflected earnings downtrend on the back of the lower CPO price trend in 2023 being priced in.

• Read more at SGinvestors.io.

William Simadiputra DBS Group Research | https://www.dbs.com/insightsdirect/ 2023-01-11 SGinvestors.io

---