He estimates that First Resources, coming off an already strong FY2024, to grow its earnings by 9.1% y-o-y in the coming FY2025 to US$206 million. "The strong CPO price momentum should provide strong support to 1H25 earnings, thanks to its forward sales scheme."
William Simadiputra of DBS Group Research has kept his "buy" call on First Resources (SGX:EB5
) , along with a target price of $2. In his Dec 10 note, the analyst believes the Indonesia-based palm oil player is enjoying a "positive" earnings momentum outlook, thanks to higher crude palm oil prices and also refining margins.
Favourable Indonesia expert tax structures and growing downstream demand, especially from key market China, are positive attributes too, says Simadiputra, who figures crude palm oil prices to average US$950 per metric tonne in 2025, up 3% y-o-y.
