Broker: CGS International
Date of Report: May 16, 2026
Excerpt from CGS International report.
Report Summary
- Stock: First Resources Ltd (FR SP)
- Action: Reiterate Add
- Target Price: S\$4.39 (raised from S\$2.60)
- Current Price: S\$3.90
- Key Idea: CGS International maintains an Add rating on First Resources Ltd, raising the target price to S\$4.39. The upgrade is driven by better-than-expected operational efficiencies following the acquisition of Austindo Nusantara Jaya (ANJT), resulting in higher yields and improved oil extraction rates.
- Highlights:
- EPS forecasts for FY26/27/28F raised by 27%/22%/33% due to higher oil yield and a weaker Rp/US\$, partially offset by higher fertiliser costs.
- Upcoming Indonesian B50 biodiesel mandate provides potential upside, with FR’s biodiesel plant already running at 85-90% utilisation.
- First quarter 2026 core net profit was US\$96.6m (+53% yoy), beating expectations.
- Cost pressures from fertilisers (+30% yoy) are manageable due to strong upstream performance and higher CPO prices.
- Implications: The stock is recommended for Add with a 12.6% upside to the new target price, supported by higher production, strong biodiesel margins, and manageable cost increases. Key risks include adverse weather and higher input costs.
- Ticker: FR SP
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
