Singapore Stock Market News

First Resources - Recovery In Yield

StockFanatic
Publish date: Mon, 17 Mar 2014, 11:00 AM
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First Resources' Feb 14 production was up yoy on yield recovery from last year's stress especially from the plasma areas. The recovery is unlikely to be sustained in the coming months, as its FFB yield could have been affected by the dry weather in 1H13 and since end-Jan 14 in Sumatra. We have taken into consideration the dry weather impact in our production forecast with only 6.7% yoy growth for 2014 vs management guidance of 5-10%.

Maintain BUY. Target price: S$2.80.
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