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First Resources - Maybank Kim Eng 2021-10-31: ESG ~ A Part Of Strategy Formulation

FIRST RESOURCES LIMITED (SGX:EB5) | SGinvestors.io FIRST RESOURCES LIMITED (SGX:EB5)

First Resources - ESG ~ A Part Of Strategy Formulation


Targets to accelerate its RSPO certification

  • First Resources (SGX:EB5)’s bid to accelerate its RSPO certification has been hampered by COVID-19 travel restrictions. Otherwise, its policy on sustainable palm oil and practices are comparable with peers. Its ESG credentials appear to be relatively good.
  • We assess its overall risk to be medium-to-high due to its inherent business risks operating huge land concessions of over 213,000 ha with more than 21,000 workers to manage. We maintain our HOLD rating on First Resources with target price on 14x FY22 PER on -1 standard deviation its 5-year mean. We prefer Bumitama Agri (SGX:P8Z).



Adopted a sustainable palm oil policy since 2015

  • First Resources launched its policy on sustainable palm oil back in 2015 which sets out its commitment to No Deforestation, No Peat, No Exploitation (NDPE). It has a strict zero burning policy too. It has identified ~20,000 ha of its land concessions as conservation areas. In its bid to further reduce GHG emissions, First Resources plans to eventually have methane capture facilities for all its 18 mills (presently installed on 7 mills).


Travel restrictions have hampered RSPO certification

  • First Resources has just 15% / 49% of its certified plantation area three complaints filed recently with RSPO to be resolved.


Focusing on boosting yields, M&A, and downstream






Ong Chee Ting CA Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-10-31
SGX Stock Analyst Report BUY MAINTAIN BUY 1.810 SAME 1.810



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