Morningstar - First Resources Ltd. (EB5) First Resourcesâ€™ 3Q Results Disappoint on Lower Selling Prices and Inventory Buildup

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Morningstar

Chokwai Lee, CFA

EUR 101.80 For Business Accounts Only

First Resourcesâ€™ 3Q Results Disappoint on Lower Selling Prices and Inventory Buildup

Despite no-moat First Resourcesâ€™ 2017 cumulative nine-month net profit rising by 54% year over year to USD 104 million, the results were below our expectations due to lower average selling prices and inventory buildup in the third-quarter. We cut our 2017 earnings estimate by 12% to reflect the near-term weakness, but our long-term forecasts are largely unchanged. We marginally reduce our fair value estimate to SGD 2.00 per share from SGD 2.02, and we think the firm is currently fairly valued.
B...

14/11/2017 12 EN

Underlying

First Resources Ltd.

First Resources is an investment holding company. Through its subsidiaries, Co. is engaged in oil palm plantation, palm oil refining and palm kernel crushing, marketing and distribution of palm oil products, investment holding, oil palm seed breeding, aircraft ownership and management, and rubber plantation. Co. and its subsidiaries have two reportable segments: Plantations and Palm Oil Mills, which is involved in the cultivation and maintenance of oil palm plantations and operation of palm oil mills; and Refinery and Processing, which markets and sells processed palm based products produced from the refinery, fractionation and biodiesel plants and other downstream processing facilities.

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SG1W35938974 Singapore Exchange Singapore

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Chokwai Lee, CFA

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Morningstar | Dropping Coverage of First Resources

We are dropping coverage of First Resources. We provide broad coverage of more than 1,500 companies across more than 90 industry groups and adjust our coverage as necessary based on client demand and investor interest.

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First Resourcesâ€™ 3Q Results Disappoint on Lower Selling Prices and Inventory Buildup

With a more favourable environment, FIRST RESOURCES improves to Positive

Morningstar | Dropping Coverage of First Resources

Dropping Coverage of First Resources

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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