- Maintain NEUTRAL on First Resources with higher S$1.65 target price (from S$1.45), 6% upside from the current First Resources's share price.
- - Read this at SGinvestors.io -
- First Resources’ valuations – post-earnings upgrade – is fair, trading at 9.1x 2025F, vs its peers’ range of 7-11x.
CPO prices continue rising; now at >MYR5,000/tonne (+15% in the past month).
- - Read this at SGinvestors.io -
- weather issues in South America resulting in slower-than-expected soybean planting progress in the initial few weeks of planting – although this has since caught up. This raised soybean oil prices by 14% in the last three weeks;
- the Thai Government’s ban on palm oil exports until year-end to try to control rising prices of cooking oil. Although Thailand is not a huge producer or exporter of palm oil, this has affected sentiment;
- (more speculative in nature) Donald Trump’s win in the US General Elections. In the 2016 election when Trump won, soybean and PO prices rallied 17% and 28% a few months before the election. Post election, prices rose further, by 10% and 11% to a peak of US$832/tonne and MYR3,306/tonne from end-2016 to early 2017.
Rest of 2024 to be susceptible to speculativeactivities, while fundamentals for 2025 are improving
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-11-12
Read also RHB's most recent report:
2024-11-15 First Resources - Q-o-q Earnings Decline Despite Stronger Output.
Price targets by 3 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
