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We expect earnings to continue growing in FY26F, coming from the full year impact of the Austindo Nusantara Jaya (ANJ) acquisition. However, First Resources's share price has rallied significantly and we believe valuation is fair now, trading at 12x 2026F P/E – at the high end of its peer range of 7-12x.
First Resources’ 1Q26 came in within expectations.
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Briefing highlights:
1Q26 nucleus FFB rose 19.5% y-o-y due to the ANJ consolidation, but fell 22.6% q-o-q, in line with seasonal patterns.
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This is higher than our projection of 6.4% and management guidance of 5-10% y-o-y for FY26F, due to the low base of 1Q25 without ANJ. Excluding ANJ, First Resources’s nucleus output was flattish y-o-y. CPO production rose by a larger 34.5% y-o-y in 1Q26, due to an inventory drawdown of 59k tonnes.
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Raising unit cost guidance to US$300-320/tonne (from US$280-300/tonne previously), on higher fertiliser costs.
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