First Resources Stock Fair Value – FIRST RESOURCES Reports 16.1% Decrease in Total Revenue for FY2023 Q2
August 13, 2023
🌥️Earnings Overview
On August 10 2023, FIRST RESOURCES ($SGX:EB5) released their financial results for the second quarter of FY2023, which ended on June 30 2023. Total revenue for the quarter was USD 448.8 million, representing a 16.1% decrease from the same period in the previous year. Net income for the quarter was USD 71.5 million, a 44.1% decline from the same period the year before.
Analysis – First Resources Stock Fair Value
GoodWhale has examined the financials of FIRST RESOURCES to provide investors with a deeper look at the company’s performance. The analysis has revealed that the intrinsic value of FIRST RESOURCES share is around SG$1.8, calculated by our proprietary Valuation Line. This indicates that the stock is currently trading at SG$1.6, which is a fair price undervalued by 9.2%. Therefore, investors can take advantage of this opportunity and buy FIRST RESOURCES shares at a discounted price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for First Resources. More…
| Total Revenues | Net Income | Net Margin |
| 1.14k | 268.7 | 23.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for First Resources. More…
| Operations | Investing | Financing |
| 459.44 | -149.28 | -269.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for First Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.79k | 377.95 | 0.84 |
Key Ratios Snapshot
Some of the financial key ratios for First Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.8% | 24.9% | 30.8% |
| FCF Margin | ROE | ROA |
| 27.1% | 16.7% | 12.2% |
Peers
The competition between First Resources Ltd and its competitors in the palm oil industry is intense. These companies include PT Mahkota Group Tbk, PT Salim Ivomas Pratama Tbk, and Teck Guan Perdana Bhd. All of these companies are vying for a share of the market and are constantly innovating to gain an edge over their competition.
– PT Mahkota Group Tbk ($IDX:MGRO)
PT Mahkota Group Tbk is an Indonesian conglomerate with interests in consumer products, real estate and construction, media, and finance. With a market cap of 2.82 trillion rupiah as of 2023, the company is one of the largest in Indonesia. Additionally, the company has a Return on Equity (ROE) of 9.48%, which is a measure of profitability that indicates how much profit the company generates relative to its shareholders’ equity. This higher-than-average ROE suggests that PT Mahkota Group Tbk is a successful company.
– PT Salim Ivomas Pratama Tbk ($IDX:SIMP)
PT Salim Ivomas Pratama Tbk is a publicly traded Indonesian food and beverage company that produces and distributes a broad range of products, from food and beverages to pharmaceuticals and chemicals. Its market cap of 6.39T as of 2023 reflects its position as a leader in the industry, which is further evidenced by its Return on Equity (ROE) of 12.4%. This high ROE is indicative of the company’s ability to generate returns for its shareholders, making it an attractive option for investors.
– Teck Guan Perdana Bhd ($KLSE:7439)
Teck Guan Perdana Bhd is a Malaysian-based company that operates in the oil and gas industry. It has a market capitalization of 72.98 million as of 2023, which indicates the company’s current value and the confidence that investors have in it. Its Return on Equity (ROE) of 42.36% indicates its overall financial performance and indicates that the company is generating good returns on its investments. The company is well-positioned to benefit from Malaysia’s growing oil and gas industry and capitalize on its potential for growth.
Summary
FIRST RESOURCES reported their earnings results for the second quarter of FY2023 on August 10, showing total revenue of USD 448.8 million, a decrease of 16.1% compared to the same quarter of the previous year. Net income was reported to be USD 71.5 million, a decrease of 44.1%. This indicates a weak performance by the company, with declining revenue and income over the year.
Investors should take this into account when considering their next steps in investing in FIRST RESOURCES. As such, investors would be wise to take a closer look at the company’s financials and take a more cautious approach when determining whether or not to invest in the company.
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