- 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.
- - Read this at SGinvestors.io -
- 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.
- - Read this at SGinvestors.io -
Reasonable price tag.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-01-08
Read also RHB's most recent report:
2024-02-29 First Resources - Decent Ending To The Year.
Price targets by 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 Dividends & Corporate Actions,
First Resources News Articles
