Stock Analysis: First Resources | Lianhe Zaobao
First Resources recommends a buy with a target price of 2.50 yuan, closing price at 2.07 yuan (+0.98%). It is expected that with production reaching its peak, the company's net profit will increase by 10% quarter-on-quarter. Although the price of crude palm oil fell by about 5% at the end of last year, the increase in production offset the negative impact. Core fresh fruit bunch production is expected to grow by 20% to 25% year-on-year. Looking ahead to this year, profits are expected to remain stable, with fresh fruit bunch production projected to increase by 5% to 10% year-on-year. Despite a previous drop of about 7% in stock price due to rising palm oil export taxes, the downside is limited, maintaining a "buy" rating
