First Resources (Singapore) (EB5) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 8.46%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.55
• Revenue Growth: 5.27%
• EPS Growth: 69.50%
• Country: SG
• Employees: 8,066
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Agricultural Farm Products
• EPS (TTM): 0.05
• Shares Outstanding: 1,584,073,000
• 10 Day Avg. Volume: 1,832,690
• 30 Day Avg. Volume: 1,551,303
• PEG Ratio: -0.21
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -47.50
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 3.35
• Enterprise Value/Ebitda: 1.69
• 1Y Price Target: $2.00
• Price Target Upside: 33.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: S$1.50 ▲(0.00%Upside)

First Resources has a strong financial foundation with excellent profitability and a stable balance sheet. The low P/E ratio and high dividend yield enhance its attractiveness as an investment. Technical indicators show stability but lack strong upward momentum. Overall, the stock presents a solid investment opportunity with potential for income and value.

Positive Factors

Earnings

First Resources reported FY24 core net profit of US$229m, which exceeded street expectations, driven by higher ASPs and continued production growth.

Operational Management

The group achieved 100% fertilisation application and maintained a low net gearing position, demonstrating strong operational management.

Productivity

FR’s productivity outlook is strong as its plantations have a favourable age profile of 14 years, with 58% within the prime age cycle.

Negative Factors

Earnings Risk

There is a risk that lower than expected palm oil prices could lead to earnings falling short of estimates.

Palm Oil Prices

Lower than expected palm oil price in 2024 and 2025 could lead to earnings missing estimates if CPO price fails to sustain its strong momentum.

First Resources (Singapore) Business Overview & Revenue Model

Company Description

First Resources Limited, an investment holding company, engages in the palm oil production activities in Singapore, Indonesia, Europe, China, and internationally. The company operates in two segments, Plantations and Palm Oil Mills, and Refinery and Processing. It is involved in cultivating and maintaining oil palms; harvesting and milling fresh fruit bunches into crude palm oil (CPO) and palm kernel (PK) products; and processing CPO and PK into value palm based products, such as biodiesel, palm kernel oil, and palm kernel expeller, as well as refined, bleached, and deodorized (RBD) olein, and RBD stearin. In addition, the company engages in the rubber plantation activities. It manages 212,208 hectares of oil palm plantations; and 6,321 hectares of rubber plantations. The company was founded in 1992 and is based in Singapore. First Resources Limited is a subsidiary of Eight Capital Inc.

How the Company Makes Money

First Resources generates revenue primarily through the sale of its palm oil products, including crude palm oil, palm kernel, and refined palm products. The company's extensive plantations in Indonesia allow for significant production capabilities, contributing to its revenue streams. Additionally, First Resources benefits from vertical integration, which enables it to control costs and maintain quality across the supply chain. The company also engages in strategic partnerships and contracts with major players in the food and consumer goods industries, further enhancing its market reach and profitability. Price fluctuations in global palm oil markets, as well as demand from key importers such as India and China, significantly impact the company's earnings.

First Resources (Singapore) Financial Statement Overview

Summary

First Resources demonstrates strong financial health with robust profitability and efficient operations. The income statement shows solid revenue growth and high profit margins, while the balance sheet reflects financial stability with low leverage. Cash flow management is improving, but there is room for efficiency enhancements.

Income Statement

First Resources has shown solid revenue growth from 2023 to 2024, with a growth rate of 5.95%. The gross profit margin stands at 42.9%, indicating efficient production processes, while the net profit margin is a healthy 23.66%. The EBIT and EBITDA margins are 32.44% and 41.24%, respectively, showing strong operational efficiency. Overall, the company demonstrates robust profitability and efficiency in its income statement.

Balance Sheet

The debt-to-equity ratio is 0.20, indicating a low level of leverage and a strong equity position. Return on equity is 17.82%, reflecting a solid return on shareholder investments. The equity ratio of 70.69% suggests financial stability. However, the slight increase in total debt warrants attention for future leverage management.

Cash Flow

Free cash flow has transitioned from negative in 2023 to positive in 2024, indicating improved cash management. The operating cash flow to net income ratio is 1.27, showing strong cash generation ability relative to net income. Free cash flow to net income ratio is 0.24, highlighting room for improvement in cash flow efficiency. Overall, cash flow management shows positive trends with some areas for enhancement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	967.82M	1.04B	980.59M	1.23B	1.03B	660.42M
Gross Profit	548.54M	445.70M	361.90M	629.32M	461.57M	292.40M
EBITDA	306.77M	428.44M	278.50M	516.90M	330.04M	240.36M
Net Income	140.91M	245.79M	145.40M	325.20M	161.11M	99.67M
Balance Sheet
Total Assets	1.79B	1.95B	1.77B	1.83B	1.87B	1.79B
Cash, Cash Equivalents and Short-Term Investments	282.26M	105.53M	110.97M	433.79M	381.46M	191.04M
Total Debt	251.11M	270.13M	237.73M	295.72M	406.74M	441.64M
Total Liabilities	377.95M	464.30M	373.06M	433.81M	602.50M	659.77M
Stockholders Equity	1.32B	1.38B	1.30B	1.31B	1.20B	1.06B
Cash Flow
Free Cash Flow	-27.66M	57.87M	-35.96M	247.78M	240.73M	121.51M
Operating Cash Flow	206.21M	311.24M	315.37M	326.16M	292.19M	192.39M
Investing Cash Flow	-359.04M	-244.49M	-351.92M	-51.98M	-1.33M	-37.14M
Financing Cash Flow	-117.18M	-70.16M	-286.73M	-217.46M	-100.15M	-23.27M

First Resources (Singapore) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:EB5, the sentiment is Positive. The current price of 1.5 is above the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.45, and above the 200-day MA of 1.44, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:EB5.

First Resources (Singapore) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EB5	71 Outperform	$2.33B	7.05	18.32%	8.46%	5.27%	69.50%
Sector *	62 Neutral	$10.29B	9.96	-0.15%	2.86%	2.14%	-32.15%
GARPF		$2.49B	6.79	7.27%	3.17%	―	―
WLMIF		$14.19B	12.54	5.84%	6.55%	―	―
HAT		€435.98M	―		―	―	―
2BU		€878.51M	6.40	16.33%	15.05%	―	―
1O4		€838.98M	7.86	14.25%	3.37%	―	―

First Resources (Singapore) Corporate Events

First Resources Limited Hosts Annual General Meeting, Highlights FY2024 Performance

First Resources Limited held its Annual General Meeting at the Suntec Singapore Convention & Exhibition Centre, where a quorum was present. The meeting included a presentation by CEO Ciliandra Fangiono on the company’s operational and financial performance for the fiscal year 2024. Shareholders had the opportunity to submit questions in advance, with responses made available online prior to the meeting. The AGM facilitated direct engagement with shareholders, addressing their inquiries and providing insights into the company’s performance and strategic direction.

The most recent analyst rating on (SG:EB5) stock is a Buy with a S$2.00 price target. To see the full list of analyst forecasts on First Resources (Singapore) stock, see the SG:EB5 Stock Forecast page.

First Resources Limited Reports Strong Production Growth in Q1 2025

First Resources Limited reported a significant increase in its quarterly production for the first quarter of 2025. The company saw a 12.4% rise in Fresh Fruit Bunches (FFB) harvested and a 14.9% increase in both crude palm oil (CPO) and palm kernel (PK) production compared to the same period in 2024. This growth reflects improved yields from both its nucleus and plasma plantations, although the CPO extraction rate slightly decreased. The positive production trend highlights the company’s strengthened operational capacity and potential for enhanced market positioning.

The most recent analyst rating on (SG:EB5) stock is a Buy with a S$2.00 price target. To see the full list of analyst forecasts on First Resources (Singapore) stock, see the SG:EB5 Stock Forecast page.