Stock Name: FirstRes
Company Name: FIRST RESOURCES LIMITED
First Resources’ Singapore-listed peers include Golden Agri Resources and Indofood Agri Resources.
Company Name: FIRST RESOURCES LIMITED
| Research House: MacQuarie | Price Call: BUY | Target Price: 2.00 |
Macquarie Research raised its target price on Singapore-listed oil palm plantation firm First Resources to $2.00 from $1.90 and maintained its outperform rating.
By 11:59 a.m., First Resources shares were up 0.3% at $1.815.
By 11:59 a.m., First Resources shares were up 0.3% at $1.815.
First Resources’ Singapore-listed peers include Golden Agri Resources and Indofood Agri Resources.
Macquarie said First Resources provides direct exposure to the theme of tightening edible oil supplies over time and the company’s medium-term earnings per share growth and return on equity profile are superior compared to its peers.
First Resources has a sizeable land bank of 250,000 hectares, out which only 75,000 has been planted with mature trees, Macquarie said, adding that the firm has the youngest mature plantation among its Singapore-listed peers.
Macquarie said while First Resources generates the bulk of its profits from upstream activities, it can take advantage of Indonesia’s recently lowered crude palm oil taxes through its new 250,000-tonne fractionation plant.
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