First Resources (EB5.SG) off 2.7% at S$1.42, in line with fellow palm stocks, barring recently sold down Wilmar (F34.SG); First Resources +15.9% since start November to yesterday, so strong 3Q results yesterday largely priced in; 3Q net profit +40.1% on year at US$36.9 million ($47.8 million), +260% on quarter, with revenue at US$88.2 million, +42.9% on year. 

DBS Vickers, which reiterates Buy call with $1.55 target, says profit rise mainly on strong fresh fruit bunch yield recovery to 6.3 MT/hectare from 4.3 MT/ha in 2Q10; says 9M10 earnings of US$72.6 million (+23% on year) in line with annualized expectations. 

 

“Heavy rain could still represent a challenge to harvesting activities in 4Q10, although we understand that conditions have improved on quarter. Should 4Q10 yields improve further, there is a chance that FR could exceed our expectations.”