$First Resources(EB5.SI)$ 2 Target Price by Q2-2025.

First Resources is a leading palm oil producer managing over 200,000 hectares of oil palm plantations across the Riau, East Kalimantan, and West Kalimantan provinces of Indonesia.

The group's core business includes cultivating oil palm, harvesting the fruit, and milling them into crude palm oil (CPO) and palm kernel.

First Resources reported a strong set of earnings for 2024 with sales rising nearly 6% year on year to US$1 billion.

Gross profit improved by 22.8% year on year to US$445.7 million and underlying net profit climbed 56.1% year on year to US$228.8 million.

The business also generated a free cash flow of US$63.2 million.

A final dividend of S$0.063 was proposed, a sharp increase from the S$0.037 paid out last year.

2024Yr total dividend amounts to S$0.098, a step up from 2023’s S$0.062.

2024Yr saw one million tonnes of CPO harvested, 5.5% higher than 2023Yr of 951,425 tonnes.

CEO Ciliandra Fangiono believes that Indonesia’s expansion of its biofuels mandate is expected to tighten global palm oil supplies and support CPO prices.

Near the end of last year, the group commenced the replanting process for plantation assets acquired in December 2023 and these will progressively contribute to First Resources’ financial performance in the future.