First Resources - Maybank Research 2024-03-01: FY23 Results below Expectations; Downgrade To HOLD

First Resources - FY23 Results below Expectations; Downgrade To HOLD

First Resources (SGX:EB5) | SGinvestors.ioFirst Resources (SGX:EB5)
  • First Resources (SGX:EB5)'s FY23 core PATMI missed ours / street estimates on higher-than-expected unit cost, unexpected downstream losses in 2H, US$13m in assets write-down (converting rubber estates to oil palm) and US$7m in FX loss.
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2H23: Hurt by downstream losses & write-down

  • 2H23 core PATMI of US$79m (-60% y-o-y) brings First Resources's FY23 core PATMI to US$146m (-56% y-o-y) which met just 76%/86% of our/street full-year estimates.
  • Lower y-o-y 2H23 profits were due to larger downstream losses, assets write-down, lower CPO ASP (-11% y-o-y) and net inventory build-up of 14,000t (i.e. lower sales), mitigated by higher FFB nucleus output (+5% y-o-y).
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  • First Resources completed ~90% of its FY23 fertiliser plan, a step-up from just 1/3 completed in 1H.
  • As for downstream, First Resources posted a LBITDA of –US$17m in 2H23 (+571% y-o-y) on -4.8% margin (-4.4-ppts y-o-y) on challenging market environment.

FY24E: FFB output to grow by up to 5% y-o-y

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Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @

Ong Chee Ting CA Maybank Research | 2024-03-01

Previous report by Maybank:
2023-05-15 First Resources - A Typical Slow Start To The Year; Better Prospects In 2H.

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


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