- Still NEUTRAL on First Resources (SGX:EB5), with new S$1.45 target price from MYR1.40, 2% upside with ~5% FY24F yield. In FY24F, productivity should improve and costs decrease, but downstream margins may remain under pressure.
- - Read this at SGinvestors.io -
1Q24 net profit surged 58% q-o-q & 87% y-o-y
- First Resources recorded a 58% q-o-q and 87% y-o-y surge in net profit in 1Q24 to US$36.1m. This came in slightly below our and Street forecasts (at 20% and 19% of FY24 estimates), likely due to higher-than-expected losses incurred by its downstream segment.
Analyst briefing highlights:
1Q24 FY24 nucleus FFB production dropped by 20% q-o-q but rose 7.1% y-o-y.
- - Read this at SGinvestors.io -
- We make no changes to our (conservative) FFB growth assumptions of 2-4% y-o-y for FY24-26F.
FR recorded a net inventory drawdown in 1Q24
- Read more at SGinvestors.io.
