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First Resources
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Joelton
Supreme |
18-May-2022 09:49
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Analysts downgrade First Resources, lower Q2 expectations
CGS-CIMB and UOB Kay Hian (UOBKH) have downgraded their calls on First Resources from &ldquo add&rdquo and &ldquo buy&rdquo , respectively, to &ldquo hold&rdquo after the Indonesian palm oil producer reported its results for the first quarter ended Mar 31, 2022.
Both brokerages think the group will see weaker quarter-on-quarter earnings in the Q2 ahead, due to the country&rsquo s complete ban on palm oil exports since April.
In a report on Monday (May 16), CGS-CIMB analyst Ivy Ng said she expects lower sales volumes and higher operating costs for First Resources going forward.
She estimates Indonesia&rsquo s Apr 28 move to impose a temporary export ban on certain palm oil products has disrupted the group&rsquo s ability to export about 75 per cent of its refined palm products.
&ldquo First Resources has reduced its purchase of third-party fresh fruit bunches (FFBs) to reserve storage capacity for its own and plasma estates. Its crude palm oil (CPO) sales in Q2 FY2022 are likely to be affected due to potential port congestion when the export ban is lifted,&rdquo added Ng.
While CGS-CIMB expects the group to post a 66 per cent higher FY2022 net profit due to higher CPO prices and a dividend yield of 5 per cent, the brokerage has trimmed its price target to S$2.10 from S$2.12.
Its downgrade comes as the stock has appreciated 38 per cent in the year to date. The brokerage also sees further downside risk to its earnings projections should Indonesia&rsquo s export ban last for more than a month.
On the contrary, UOBKH raised its target price on First Resources to S$2.30 from S$2.10 after raising its FY2022-2023 estimates to factor in higher CPO ASP (average selling price) assumptions.
Despite the higher target price, the research house has downgraded its call on the stock due to uncertainty from the latest Indonesian policies, and the impact from current export bans.
Like CGS-CIMB it also projects the group&rsquo s Q2 earnings to come in lower quarter on quarter, dragged by the export bans and lower total FFB processed.
&ldquo As export sales have been halted for the time being and coupled with the limited storage capacity, refining operation would have to be reduced which would result in a low utilisation rate and lower downstream margin,&rdquo said UOBKH analysts in a report on Tuesday.
&ldquo Even though First Resources would be able to convert some of its CPO into other items that can be exported, we reckon that the sales volume would be small,&rdquo they added.
Noting slow local sales while the exports market is temporarily closed, the analysts highlighted a potential for short-term cash flow to be affected for most palm players in Indonesia.
They however believe First Resources is in a &ldquo better position&rdquo compared to its peers as it is still able to generate operating cash flow from the sales of biodiesel to fulfil the local mandate and export the balance of the palm products not subjected to the ban.
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Joelton
Supreme |
14-May-2022 19:05
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First Resources Q1 profit jumps over 700% to US$73.6m on higher selling prices
INDONESIA palm oil producer First Resources : EB5 +0.48% posted a net profit of US$73.6 million for its first quarter ended Mar 31, 2022, jumping by 738.5 per cent from the US$8.8 million it recorded a year earlier.
Sales increased 54.1 per cent to US$303.5 million, from US$196.9 million a year ago.
The growth was mainly driven by stronger average selling prices achieved in the quarter as compared to that in the same period in 2021, despite a decline in sales volumes, the company said on Friday (May 13).
It noted that overall sales volumes were hit by a net inventory build-up in the quarter, as compared to a net drawdown in the corresponding year-ago period, as well as a dip in production volumes and yields.
In the quarter, the company harvested 752,927 tonnes of fresh fruit bunches, 5.6 per cent lower than the 797,432 tonnes a year ago.
Production of crude palm oil also fell 9.4 per cent to 192,667 tonnes, from 212,564 tonnes a year earlier, while production of palm kernel was down 7.7 per cent to 43,335 tonnes, from 46,971 tonnes a year ago.
First Resources said it saw challenges arising from changes in Indonesian government policies to address domestic cooking oil shortages and inflation, on top of supply disruptions from the Russia-Ukraine conflict.
Indonesia in April started a complete ban on palm oil exports, after it switched between tightening export volumes and raising export levies since January, to ensure local supply and lower domestic prices of cooking oil.
Although the company noted that the ban is temporary and will be evaluated periodically, it expects the length of the export ban will also have an impact on the upcoming results of its operations.
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Joelton
Supreme |
25-Feb-2022 09:10
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First Resources H2 profit more than doubles to US$128.6m
FIRST Resources on Friday (Feb 25) reported US$128.6 million in net profit for H2 FY2021, representing a 112.1 per cent year-on-year increase from its restated H2 FY2020 profit of US$60.6 million.
Earnings per share for the half-year stood at US$0.0815, from US$0.0388 in the year-ago period.
Sales grew by 62 per cent to US$619.4 million on the back of higher average selling prices and sales volumes.
For H2 FY2021, gross profit improved by 61.7 per cent to US$288.3 million with a gross profit margin of 46.5 per cent, compared to 46.7 per cent the previous year.
The group noted that higher average selling prices were the main driver of the improved gross profitability despite the flattish margins, which were impacted by increased purchases of palm oil products from third parties.
For the full year, First Resources reported earnings of US$161.1 million or a 61.6 per cent increase from US$99.7 million in FY2020, while sales grew 56.3 per cent on-year to a record US$1 billion.
Fresh fruit bunches (FFB) grew 2.9 per cent year on year with FFB yield coming in at 17.2 tonnes per hectare as compared to 16.4 tonnes per hectare in FY2020.
A final ordinary dividend of S$0.051 per share has been proposed, bringing the dividend for the full year to S$0.0635. The group said this is in line with its dividend policy, which was revised last year to distribute up to 50 per cent of the group' s underlying net profit annually, from 30 per cent previously.
Noting record-high palm oil prices in the second half of 2021, chief executive Ciliandra Fangiono sees global vegetable oil supply remaining tight in the near term due to weather influences and continued labour shortages at Malaysian palm oil plantations.
" While the near-term supply tightness has been supportive of palm oil price, its relative pricing against other competing oils and the pace of supply recovery in the rest of the year will exert an influence on the direction of palm oil prices going forward," he said.
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alwayshopeful
Senior |
19-Nov-2021 12:34
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This one the share price dropped quite a lot after the recent results. Any analyst report? |
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123Sang
Senior |
16-Nov-2021 19:30
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today dropped alot, contra force selling or someone selling? | ||
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Joelton
Supreme |
16-Nov-2021 09:08
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First Resources Q3 underlying net profit rises by 44.9% on higher prices and volume
FIRST Resources First Resources: EB5 -1.25% on Monday (Nov 15) reported an underlying net profit of US$52.8 million (S$71.4 million) for the third quarter ended Sep 30, up 44.9 per cent from US$36.5 million the year before.
The marked improvement in topline performance was driven by the higher average selling prices and stronger sales volume, the palm oil producer said in a business update.
The group added that the better performance also came from a net inventory drawdown of 48,000 tonnes in Q3 2021 as compared to a net build-up of 5,000 tonnes in Q3 2020. Sales also rose by 89.2 per cent to US$314.2 million, from US$166.1 million the year prior.
The group saw a 4.1 per cent decrease in crude palm oil (CPO) production to 228,460 tonnes from 238,226 tonnes in Q3 2020. Palm kernel production was down 3 per cent to 53,096 tonnes, from 54,760 tonnes the year before.
The amount of fresh fruit bunches harvested stood at 909,506 tonnes, down 2.1 per cent from 928,900 tonnes in Q3 2020.
First Resources said the earnings before interest, taxes, depreciation, and amortisation and underlying net profit in the first 9 months of 2021 continued to reflect the impact of higher export taxes from the progressive export levy structure implemented in Indonesia since Dec 2020.
However, the reduction in export levies for palm oil products effective Jul 2, 2021 is positive for the Group' s results in Q3 2021 and beyond.
Under the revised levy structure, the incremental levy on CPO payable by exporters for every US$50 per tonne of increase in market CPO price was reduced from US$30 per tonne to US$20 per tonne, while the maximum levy payable for every tonne of CPO exported was lowered by US$80 per tonne.
Chief executive officer of First Resources, Ciliandra Fangiono, said that on the production front, Q3 2021 is shaping up to be the peak production quarter for the group as output for Q4 2021 is expected to taper off quarter on quarter.
" Demand for palm oil has been fuelled by India' s reduced import duties to contain rising domestic vegetable oil prices. In addition, China' s power supply issues hampered soybean crushing activities and drove substitution demand for palm oil. The supply of palm oil, on the other hand, has been impeded by labour shortages in Malaysia. As a result, palm oil prices were propelled to historical highs recently," said Fangiono.
Fangiono added that price movements in energy and other vegetable oils will continue to exert an influence on the direction of palm oil prices going forward.
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axlaxlaxl
Member |
15-Nov-2021 10:16
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as expected.... FR in a free fall since hitting 1.9x high... waiting to go in again when it goes near 1.4. | ||
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Everyday
Master |
15-Nov-2021 06:56
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Singapore, 15 November 2021 &ndash First Resources Limited (&ldquo First Resources&rdquo or the &ldquo Group&rdquo ) delivered a 89.2% spurt in sales to US$314.2 million for the third quarter ended 30 September 2021 (&ldquo 3Q2021&rdquo ), with EBITDA and underlying net profit up by 52.4% and 44.9% to US$108.8 million and US$52.8 million respectively. For the year-to-date nine months ended 30 September 2021 (&ldquo 9M2021&rdquo ), the Group caught up on its weaker performance in the first half of the year to turn in EBITDA and underlying net profit improvements of 14.6% and 5.6% respectively Full details at Sgx website under Co announcements |
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geoffrey744
Member |
05-Nov-2021 11:52
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First Resources will recover today.Oversold on Wednesday before Devali Holiday. Probably rebound to $1.73 for a start. Good luck those who bought on Wednesday |
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pcxiao2008
Master |
02-Nov-2021 09:41
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free fall? wat happen to this ctr? | ||
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alwayshopeful
Senior |
07-Oct-2021 07:58
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2.00 today? |
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CheeryVGoh
Supreme |
06-Oct-2021 13:51
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Malaysia CPO futures hit RM5,000 a tonne for the first timeAccording to CGS-CIMB, Malaysian palm oil stocks likely fell 2.5% month-on-month in September 2021 amid higher export volume. (Photo by Mohd Suhaimi Mohamed Yusuf/The Edge)  KUALA LUMPUR: Bursa Malaysia crude palm oil (CPO) futures price rose to RM5,000 a tonne for the first time on Tuesday after the commodity traded up as much as RM162 before paring gains at the bourse' s afternoon break. As at Tuesday' s close, CPO for October 2021 settled at RM4,975 a tonne after being traded between RM4,850 and RM5,000. In a note a day earlier, CGS-CIMB Securities head of Malaysia research and regional head of agribusiness Ivy Ng Lee Fang said that the average CPO price was up year-on-year (y-o-y) amid concerns over tight edible oil supplies, and that palm oil exports could remain strong in October due to the Diwali festival. " We project CPO prices remaining firm at RM3,500 to RM4,500 per tonne in October 2021. We maintain our average CPO price forecasts of RM3,700, RM2,900 and RM2,800 per tonne for 2021, 2022 and 2023 [respectively]," she said. Meanwhile, Ng said Malaysian palm oil stocks likely fell 2.5% month-on-month (m-o-m) in September 2021 amid higher export volume. " We estimate palm oil exports grew by 39% m-o-m and 0.3% y-o-y in September 2021 to 1.62 million tonnes, likely due to higher exports to India, China and the EU (European Union). The estimated palm oil export volume for September 2021 of 1.62 million tonnes is higher than the historical 10-year average of 1.56 million tonnes for September. " We suspect the sharp rise in exports could be due partly to the cut in India' s import duty on palm oil and the shifting of palm oil imports from Indonesia to Malaysia," said Ng. Meanwhile, she expects slower m-o-m output due to a labour shortage, with just an estimated 1.6% rise in CPO output to 1.73 million tonnes & mdash lower than the 10-year historical September output trend of 3.3% m-o-m. The projected CPO output for the month is also 5% lower than the past 10-year average of 1.83 million tonnes for the month of September, and 7% lower y-o-y. " Our survey revealed that East Malaysia estates posted a sharper m-o-m rise in production in September. " The lower estimated achievement for September' s output against historical production for the same month is a reflection of the severe shortage of foreign workers faced by Malaysian planters, ageing trees due to slow replanting, slower new planting rates and lower fertiliser input due to logistics issues," Ng added. |
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alwayshopeful
Senior |
06-Oct-2021 12:30
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Closed at 1.90 for lunch. Amazing.
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axlaxlaxl
Member |
06-Oct-2021 12:27
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finally.... bought this for so many years.... accumulating and averaging down... finally managed to dump 50 lots today!! Knowing First resource ... this will tumble down very quickly | ||
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Ipoh123
Senior |
06-Oct-2021 12:08
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Strong volume, enjoy ride. | ||
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alwayshopeful
Senior |
06-Oct-2021 10:33
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1.81 now. Up 9%. |
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alwayshopeful
Senior |
06-Oct-2021 10:03
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1.73 now. Should hit 1.80 soon. |
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PhillipTan
Elite |
24-Aug-2021 22:38
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UOB Kay Hian downgrades First Resources to ' hold' as analysts look to 2H21 for better resultsAnalysts have had mixed reactions to First Resources' announcement of its 1HFY2021 ended June results on August 13 which saw earnings of US$32.6 million ($44.3 million), below consensus estimates.UOB Kay Hian has downgraded its rating to " hold" with a lower target price of $1.40 from $1.50 previously. Maybank Kim Eng has kept its " buy" call but with a lower target price of $1.81, down from $1.88 previously. Meanwhile, RHB kept its " buy" rating and target price of $1.50 unchanged. All three brokerages noted that First Resources' lower earnings was mainly driven by lower average selling price (ASP) arising from earlier committed sales that were priced before factoring the higher levy that took effect in December 2020. Nonetheless, analysts expect a much stronger 2HFY2021 performance from the company, driven by higher ASP reflective of current higher crude palm oil (CPO) prices as well as favourable revision in the export tax structure that came into effect on July 2. UOB Kay Hian and Maybank Kim Eng also point out that First Resources has an inventory build-up of some 20,000 tonnes as at June due to some delayed shipments and deliveries, which may translate to higher sales in 2HFY2021. UOB Kay Hian analysts Jacquelyn Yow Hui Li and Leow Huey Chen highlight that First Resources' 1HFY2021 earnings accounted for only around 15% of their full-year estimate, coming in below expectations. While the analysts expect First Resources' strong downstream performance to carry into the 2HFY2021, they point out that the company' s fertiliser application was behind schedule in the first half of the year, accounting for less than 50% of its full-year target due to the high rainfall at the start of the year. To that end, Yow and Leow have tweaked their earnings estimates for FY2021 and FY2022 down by 14.3% and 4.5% respectively to account for higher fertiliser cost, though this will be partially offset by better downstream margins. Maybank Kim Eng analyst Ong Chee Ting considers the " slow start" for First Resources' earnings within his expectations. He maintains his " buy" call for the company in view of the better performance expected for the second half of the year driven by higher output and CPO prices. " Following our industry-wide CPO price upgrade, we have raised our FY2021-2023 EPS by 6%/4%/4% respectively," he remarks. His has rolled forward his valuations to FY2022. His revised target price of $1.81 is based on 14 times P/E which is pegged at one standard deviation below its five-year mean to reflect slowing growth prospects. RHB' s Singapore research team believes investors should look past First Resources 1HFY2021 to the better performance in the second half. " We make no changes to our forecasts. We believe 2H2021 will be the much stronger half given the prevailing higher prices," the team remarks. As at 12.09pm, shares in First Resources are trading up 2 cents or 1.42% higher at $1.43. |
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PhillipTan
Elite |
16-Aug-2021 12:25
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UOBKH downgrades First Resources to ' hold' after earnings disappointmentUOB Kay Hian (UOBKH) has downgraded its call on First Resources from " buy" to " hold" with a lower price target of S$1.40 compared to S$1.50 previously.The move comes after First Resources on Friday posted a 16.7 per cent fall in net profit to US$32.6 million for the six months ended June 30, missing UOBKH and consensus estimates due to lower-than-expected average selling price (ASP) and delays of sales bookings. In a report on Monday, the brokerage' s analysts opined that the group' s H2 profits should come in " significantly better" on recovering ASP and sales volume, as lower price contracts have been fully delivered in the period under review. " We expect H2 FY2021 earnings to improve as Indonesia has reduced the export levies which will help to reduce the export tax burden for exporters in H2. The revised export levy structure would also result in higher net selling price. H2 ASP will be more reflective of the current high selling price," they said. Noting an inventory build-up of 20,000 tonnes as at June 2021, the analysts are also expecting higher sales volumes during the quarter as market players held back their orders in Q2 in anticipation of Indonesia' s downward revision of export levies, which was effective from July 2021. UOBKH has nonetheless revised its earnings estimates for FY2021 and FY2022 down by 14.3 per cent and 4.5 per cent to factor in higher fertiliser costs, partially offset by improved downstream margins. The resultant target price revision reflects a dividend yield of 5.1 per cent and a payout of 50 per cent, as well as a valuation pegged at 11 times FY2022 price-to-earnings (P/E), which is two standard deviation points below the stock' s five-year average mean. Likewise, Maybank Kim Eng (Maybank KE) is expecting a much-stronger H2 for First Resources on expectations of better fresh fruit bunches output and crude palm oil (CPO) prices, despite noting a " slow start" in H1 although the results were still considered within the brokerage' s expectations. It maintains " buy" on the stock while lowering its target price to S$1.81 from S$1.88 to base its valuation on a rolled-forward 14 times FY2022 P/E, pegged at one standard deviation point below the five-year mean on " slowing growth prospects" . " Following our industry-wide CPO price upgrade, we have raised our FY2021 to FY2023 earnings per share by 6 per cent, 4 per cent and 4 per cent respectively," said Maybank KE in a report issued on Sunday. Shares of First Resources were trading S$0.01 or 0.7 per cent higher at S$1.41 as at 11.40am on Monday. |
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Joelton
Supreme |
14-Aug-2021 13:23
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First Resources H1 net profit falls 16.7% to US$32.6m on higher export taxes
Despite profit drop, palm oil producer sees 48.4% surge in sales
PALM oil producer First Resources on Friday announced a 16.7 per cent drop in net profit to US$32.6 million for the six months ended June 30, from US$39.1 million a year ago.
Earnings per share fell to 2.06 US cents in H1, from 2.47 cents in the year-ago period.
This was mainly due to the impact of higher export taxes from the progressive export levy structure implemented in Indonesia in December 2020.
The decline came despite a 48.4 per cent surge in sales to US$412.9 million, driven by higher average selling prices as well as stronger production and sales volumes.
Fresh fruit bunches harvested increased by 11.3 per cent, while crude palm oil production volumes rose by 15.4 per cent.
Gross profit was 51.9 per cent higher at US$173.3 million for the first half, with gross profit margin edging up one percentage point to 42 per cent.
" Palm oil prices had been volatile during the first half of the year, driven by price movements in the rest of the vegetable oil complex and expectations of impending changes to the export levy structure in Indonesia," said Ciliandra Fangiono, chief executive officer of First Resources, in a bourse filing on Friday morning.
The company noted that effective July 2, Indonesia has reduced its export levies for palm oil products.
It said this would help to reduce the export tax burden for exporters in the second half of the year.
" Looking ahead, palm' s attractive relative pricing against competing edible oils is expected to lend support to prices, while the lower export levy in Indonesia will help to reduce the export tax burden for exporters in the second half of the year," he added.
The company has declared a higher interim dividend of 1.25 Singapore cents, to be paid out on Sept 9. This is higher than the interim dividend of one cent in the corresponding period a year ago.
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