$First Resources(EB5.SI)$ 4 Target Price.

  First Resources (EB5.SI) is experiencing a powerful upswing driven by a 53.1% YoY surge in Q1-2026 net profit, fueled by record-high sales volumes and a favorable palm oil pricing environment. While the stock has rallied sharply, leading to what some analysts see as fair valuation. The biofuels underlying business momentum remains robust, with supportive macroeconomic from fluctuating oil prices, caused by Hormuz-Strait blockage.

Growth Catalysts

1. Exceptional Q1 2026 Financial Performance The company's recent quarterly report shows a dramatic acceleration in growth.

Revenue: Sales surged 70.4% year-on-year (YoY) to US$477.2 million in Q1-2026.

Net Profit: Net profit attributable to biofuels demands jumped 53.1% YoY to US$96.6 million.

Operational Drivers: This was powered by a 20% increase in fresh fruit bunches (FFB) harvested and a 34.5% jump in crude palm oil (CPO) output to 311,833 tonnes.

2. Favorable Palm Oil Price Outlook 

Analyst reports and market trends point to continued support for palm oil prices.

A key analyst from DBS Research maintains a Buy rating, citing that CPO prices are benefiting from the Middle East conflict and its wide discount to rival soybean oil, which is expected to support prices.

Indonesia's biodiesel programme is flagged as a key demand driver, with the potential shift to a B50 blend (50% palm oil-based biodiesel) expected to further tighten global supply-demand conditions, pushing prices higher .

3. Strong Balance Sheet and Cash Position The company's financial health has improved significantly.

Cash and bank balances grew to US$367.6 million as of March-2026, up from the end of FY2025, providing a strong buffer and potential for expansion or shareholder returns.

Total assets grew 48.2% YoY to ~US$2.89 billion.