For 1QFY2024, FR’s refining margins remained in the negative. The company has not seen any marked improvements given the still-weak demand from its destination markets, while competition from other crude palm oil (CPO) producers is heating up, RHB analysts point out.
Analysts at RHB Bank Singapore, Maybank Securities and UOB Kay Hian (UOBKH) are maintaining their “neutral”, “hold” and “buy” calls on First Resources (SGX:EB5
) (FR) following the planter’s 1QFY2024 ended March results release.
In their May 16 report, RHB analysts note that FR recorded a 87% y-o-y surge in net profit in 1QFY2024 to US$36.1 million, which is below their and consensus expectations. This is likely due to higher-than-expected losses incurred by FR’s downstream segment.
