- First Resources’s 1H23 results were largely in line with expectations. While 2H should see stronger earnings on improved productivity and moderating costs, valuation remains fair as the stock is trading at 9x 2024F P/E – in line with its peer range of 6-12x.
- - Read this at SGinvestors.io -
FR recorded a 170% q-o-q rise in core net profit in 2Q23
- First Resources (SGX:EB5) recorded a 170% q-o-q rise in core net profit in 2Q23, resulting in a 43% y-o-y decline in 1H23 net profit to US$74.3m. This came in largely in line with our, but was below consensus forecasts, at 46% and 41% of FY23F.
- It declared an interim dividend of 2.5 cents (1H22: 2.5 cents).
Briefing highlights:
1H23 nucleus FFB production dropped by 4.6% y-o-y
- - Read this at SGinvestors.io -
- First Resources is now lowering its output guidance to flat for FY23, expecting production to pick up in 2H23 with the 1H:2H output ratio at 42%:58%. We keep our FFB growth assumptions at +1-3% y-o-y for FY23F-25F;
Inventory drawdown in 1H23.
- Read more at SGinvestors.io.
