First Resources' 4Q Earnings Likely to Get Boost From Palm Oil Prices -- Market Talk
First Resources' 4Q Earnings Likely to Get Boost From Palm Oil Prices -- Market Talk
0735 GMT - First Resources' 4Q earnings will likely rise amid higher palm-oil prices due to tight supply conditions of the vegetable oil, CGS-CIMB says. This should outweigh the negative impact of an expected lowering of 4Q output given its seasonal production pattern as well as higher fertilizer and other input costs. The broker expects a 4Q net profit of US$54.4 million versus US$52.8 million in 3Q. CGS-CIMB keeps an add rating on the stock, raising its target price to S$1.76 from S$1.67 to account for the expected earnings growth. Higher-than-anticipated palm oil prices also provides a positive re-rating catalyst. Shares are down 3.2% at S$1.53. (yongchang.chin@wsj.com)
0735GMT-CGS-CIMB表示,由於棕櫚油供應緊張,棕櫚油價格上漲,First Resources的第四季度收益可能會上升。考慮到季節性生產模式以及化肥和其他投入成本的上升,這應該會蓋過預期第四季度產量下降的負面影響。該經紀公司預計第四季度淨利潤為5440萬美元,而第三季度為5280萬美元。CGS-CIMB維持對該股的ADD評級,將其目標價從1.67新元上調至1.76新元,以計入預期的收益增長。高於預期的棕櫚油價格也提供了正面的重新評級催化劑。股價下跌3.2%,報1.53新元。(yongchang.chin@wsj.com)
譯文內容由第三人軟體翻譯。