First Resources - Maybank Research 2026-05-17: Good Start To The Year

• 1Q26 PATMI beat our/street estimates, boosted by inventory drawdown. Upcoming quarterly results should be lifted by higher ASPs and output.

FY26E FFB growth guidance unchanged at +5%-10%

• 1Q26 headline PATMI of US$97m (+53% y-o-y) met 30% /28% of our/consensus FY26E estimates. 1Q results were boosted by strong sales revenue (+70% y-o-y) underpinned by

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  • large inventory drawdown of 59,000t in 1Q26 (1Q25: net inventory build-up of 18,000t).

• 1Q FFB nucleus production met 21% of our full-year estimate, within historical ranges. First Resources maintains its 5-10% nucleus growth guidance for 2026 (MIBG estimate: +5%).

Raising its unit cash cost guidance by +7% for FY26E

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• As for downstream division, we understand 1Q26’s downstream margins were positive, anchored by its biodiesel plants. However, the recent spike in methanol cost may put pressure on margins in the coming quarters if Indonesia’s biodiesel subsidy formula stays the same.

FY26E-28E core PATMI raised by +8%-11%

• Read more at SGinvestors.io.

Ong Chee Ting CA Maybank Research | https://www.maybanktrade.com.sg/ 2026-05-17

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