First Resources (SGX-listed) through the Plantation and Palm Oil Mills, focuses on the cultivation and maintenance of oil palm plantations and operation of palm oil mills. Its Refinery and Processing segment deals with the marketing and sale of processed palm-based products produced from the refinery, fractionation and biodiesel plants, and other downstream processing facilities.
Its Monthly chart on the left compares its share price with the price of Crude Palm Oil (CPO). Over the years, First Resources price movement had been mostly influenced by the movement in CPO. Recently, CPO prices had blast up and is currently trading at its 10-year high, whereas First Resources price action is relatively muted. This can also be seen from its P/B (Price-to-Book) valuation, which is hovering near its 10-year low level.
JPMorgan has a Buy recommendation on First Resources with a 12-month target price of S$2.10. You may refer to the attached for its report to understand about its investment thesis.
On its daily chart, we can see a strong accumulation in CPO as shown on the gold-coloured price line. Recent weakness in the share price of First Resources can be deem as an opportunity to add some positions to it. From its recent price action, support can be set at $1.25 and resistance at $1.75 levels.
As usual, this writeup was broadcast to Clients on 20 April 2021 but posted here only on 23 April 2021.
Disclaimer:
This is an opinion piece. Please always do your own due diligence on the company's fundamentals & assess if the Fundamental / Technical analysis opinions are applicable to your trading/investing needs.
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