CGS-CIMB analysts Research analysts Ivy Ng Lee Fang and Nagulan Ravi have raised their target price for First Resources to $1.76 from $1.67 previously, as the company is poised for stronger 4Q21F earnings.
First Resources reported a 5.6% y-o-y rise in 9M21 underlying net profit — thanks to a strong 3Q21 underlying net profit of US$52.8 million, the analysts note. The 3Q21 net profit accounted for 64% of 9M21 underlying profit, as only a low proportion of the group’s sales volumes were impacted by the forward sales contracts it locked in at lower crude palm oil (CPO) prices earlier this year.
On top of this, First Resources also benefited from a lower export levy rate starting 1 Jul 2021.
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