First Resources - RHB Invest 2024-01-08: Successful Bid For 17,600ha Of Plantation Assets

• First Resources (SGX:EB5)’s bidding price for 17,600ha of landbank and assets in Riau is reasonable, at an estimated cost of US$13.35k/ha post-replanting. This acquisition will increase its landbank by ~8%, but is not likely to contribute to earnings until at least 3-4 years later.
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• No change to our NEUTRAL call and S$1.45 target price for First Resources. First Resources's share price is trading at 8.5x P/E, which is within its peer range of 7-11x P/E. Valuation remains fair.

The acquisition.

• Recently, First Resources was successful in bidding for plantation assets held by Tri Bakti Sarimas, at a cash consideration of IDR1.9trn (US$122.7m). Assets include mills, plantations and unplanted landbank spanning approximately 17.6k ha in Riau, Indonesia.
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Reasonable price tag.

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Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2025-11-17 First Resources - Strong Earnings Growth Continues.

Previous report by RHB:
2025-08-26 First Resources - Mandatory Takeover For ANJ; Maintain BUY.

Price targets by 2 other brokers at First Resources Target Prices.

Listing of research reports at First Resources Analyst Reports.

Relevant links:
First Resources Share Price History,
First Resources Announcements,
First Resources Dividend Payout Dates & Corporate Actions,
First Resources News