Stock Name: FirstRes
Company Name: FIRST RESOURCES LIMITED
Research House: DMG
DMG & Partners Securities in a May 16 research report says: "First Resources' (FR) 1Q10 earnings was in line, coming in at 21.4% of our FY estimates, attributable to higher selling prices for crude palm oil and palm kernel.
"Strong fresh fruit bunches (FFB) production growth was seen in 1Q10, with nucleus up 24.7%. FFB plasma production has recovered (up 33.4% y-o-y), thus giving production an added boost this year. FR has completed the acquisition of 100k ha of land in East Kalimantan and land usage details are likely to emerge in 1H12.
"Looking ahead, we do not expect comparably strong double digit y-o-y production growth in 2H11 (unlike in 1H11), since FR's trees showed signs of a recovery earlier than its peers last year. Target price of $1.77, based on 15x FY11 earnings. MAINTAIN BUY."
Company Name: FIRST RESOURCES LIMITED
Research House: DMG
DMG & Partners Securities in a May 16 research report says: "First Resources' (FR) 1Q10 earnings was in line, coming in at 21.4% of our FY estimates, attributable to higher selling prices for crude palm oil and palm kernel.
"Strong fresh fruit bunches (FFB) production growth was seen in 1Q10, with nucleus up 24.7%. FFB plasma production has recovered (up 33.4% y-o-y), thus giving production an added boost this year. FR has completed the acquisition of 100k ha of land in East Kalimantan and land usage details are likely to emerge in 1H12.
"Looking ahead, we do not expect comparably strong double digit y-o-y production growth in 2H11 (unlike in 1H11), since FR's trees showed signs of a recovery earlier than its peers last year. Target price of $1.77, based on 15x FY11 earnings. MAINTAIN BUY."
No comments:
Post a Comment