First Resources Ltd. (FR SP): Seasonality to boost palm oil prices
BUY Entry – 1.7 Target – 1.9 Stop Loss – 1.6
First Resources Limited produces crude palm oil. The Company is an upstream operator with primary business activities in the cultivation and harvesting of oil palms, and the processing of fresh fruit bunches into crude palm oil for local and export sales.
Production growth and margin expansion to boost bottom-lines. First Resources delivered a strong 1H25 performance with net profit up 43.6% YoY to US$149.2mn and EBITDA surging 56.3% to US$262.3mn, driven by higher ASPs and volumes. The successful integration of Austindo Nusantara Jaya (ANJ), completed in May, has expanded production capacity, while fresh fruit bunch (FFB) harvests rose 23.0% YoY to 2mn tonnes and CPO output surged 28.9% YoY to 554,519 tonnes. Looking ahead, seasonally higher output and full-year consolidation of ANJ should further lift volumes. Together with an improved sales mix and cost efficiency gains, margins are positioned to expand even if prices soften in the short term, reinforcing First Resource’s earnings resilience.
Crude palm oil price
(Source: Bloomberg)
Policy tailwinds and strong demand to support prices. First Resources will benefit from supportive demand drivers amid Indonesia’s B40 biodiesel mandate, with a B50 mandate targeted in 2026, which will raise domestic consumption of palm oil. On the export front, China has requested long-term CPO supply commitments, reinforcing palm oil’s role as a strategic commodity in global trade. India’s recent import duty cuts and festive restocking should boost near-term demand, while declining Malaysian inventories, projected to end-2025 at 1.7mn tonnes, may provide further price support. Despite headwinds from soy oil substitution and higher export levies in Indonesia, palm oil remains cost-competitive compared to rival oils, sustaining robust global demand. These policy and consumption tailwinds provide a favourable backdrop for First Resources’ revenue visibility.
1H25 financial results. Total sales for 1H25 increased by 47.4% YoY to US$673.9mn from US$457.2mn, primarily due to the higher average selling prices and stronger sales volumes. Net profit was US$149.2mn in 1H25, an increase of 43.6% YoY. Basic EPS rose in 1H25 to US$0.0963, up from US$0.0667 in 1H24. The company also declared an interim dividend of S$0.045 per share, to be paid on 10 September.
Market consensus
(Source: Bloomberg)
Seatrium Ltd. (STM SP): Strengthening margins and diversifying growth
Seatrium Ltd offers engineering solutions for the offshore, marine, and energy industries. The Company provides rigs and floaters, repairs and upgrades, offshore platforms, and specialized shipbuilding. Seatrium serves customers worldwide.
Strong earnings momentum and order book visibility. Seatrium delivered a 301% YoY jump in net profit to S$144.4 million for 1H25, supported by a 34% revenue increase to S$5.4 billion and gross margin expansion to 7.4% from 3.7%. The performance reflects both stronger execution and a shift toward higher-margin projects. Its net order book of S$18.6 billion, with 34% linked to renewables and cleaner solutions, provides visibility through 2031 while buffering against short-term volatility. Management is also pursuing a S$30 billion tender pipeline, positioning the group to capture demand from both conventional offshore oil & gas projects and energy-transition related infrastructure.
Offshore and marine growth. Despite rising global policy uncertainty, Seatrium’s exposure to energy security has proven resilient. Oil and gas revenues rose 26.5% YoY to S$3.6 billion, with contributions from six Petrobras FPSO builds and a pipeline of S$19 billion in opportunities across Brazil, the Middle East and the Gulf of Mexico. At the same time, Seatrium is strategically expanding into renewables, carbon capture and maritime upgrades to align with the global energy transition. This balanced approach ensures Seatrium is positioned to capture both near-term offshore demand and long-term structural energy shifts. Concurrently, the divestment of its AmFELS Yard in Texas for S$65 million unlocks capital and operational efficiencies while allowing the company to maintain a U.S. presence via technology and service centers in Houston and Vicksburg.
Broadening global reach. The newly signed MOU with Cochin Shipyard Limited (CSL) represents a strategic step into India’s fast-growing offshore energy sector, where oil demand is expected to be the world’s largest driver by 2030. The collaboration enhances Seatrium’s regional footprint in Asia and combines CSL’s local market strength with Seatrium’s engineering expertise. This expansion, alongside renewables projects and international collaborations, supports the company’s pivot towards becoming a diversified offshore and energy solutions leader.
1H25 financial results. Seatrium delivered net profit of S$144 million in 1H25, an increase from S$36 million for 1H2024. Revenue grew 34% to S$5.4 billion, up from S$4.0 billion for 1H24 and gross margin was 7.4% for 1H25, compared to 3.7% for the same period last year. Seatrium’s net order book stood at S$18.6 billion as of 30 June 2025, comprising 25 projects with deliveries extending to 2031. Projects relating to renewables and green/cleaner solutions amounted to S$6.3 billion of net order book. During the period, it delivered 2 FPSO integration project and completed 101 Repairs & Upgrades projects.
Market consensus
(Source: Bloomberg)
JL Mag Rare-Earth Co Ltd. (6680 HK): Monetising policy-induced scarcity
BUY Entry – 23.0 Target – 26.0 Stop Loss – 21.5
Jl Mag Rare-Earth Co Ltd is a China-based company mainly engaged in the manufacture and sale of high-performance NdFeB magnets. The Company is engaged in the research and development, production and sale of high-performance NdFeB permanent magnet materials, magnetic components and the recycling and comprehensive utilization of rare earth permanent magnet materials. The Company’s products are used in new energy vehicles and auto parts, energy-saving variable frequency air conditioners, wind power generation, 3C, robots and industrial servo motors, energy-saving elevators, rail transportation and other fields.
Export controls strengthen China’s leverage. China’s single-use export-license issuance has turned rare earth magnets into a controlled gate, with only about 13.5% of European applicants approved by 9 September. Tight approvals and elongated processing times have already forced production pauses at foreign buyers and squeezed Korea’s downstream, particularly for heavy rare earth elements (REEs). In this constrained environment, scale, compliance readiness and customer vetting matter. As a top domestic NdFeB producer, JL Mag is better positioned to secure licenses where granted and to re-price product into other markets. The net effect improves mix and margin potential as policy tightness raise scarcity value and shifts bargaining power toward leading domestic producers like JL Mag to command premium pricing in Europe, Japan, and Southeast Asia.
Domestic demand to offset export volatility. China consumes approximately 90% of the world’s REE magnets and continues to prioritize electrification and industrial upgrading. With foreign buyers facing inconsistent access, procurement is tilting toward China-based, license-ready suppliers to preserve continuity, further anchoring JL Mag’s order book domestically while selectively filling higher-margin export slots. Policy support for deepening the onshore value chain and exploratory moves to expand Chinese processing footprints abroad, with early-stage Malaysia discussions ongoing, reinforce long-term demand visibility for integrated Chinese magnet makers.
Ongoing construction of rare earth magnetic materials plant. JL Mag Rare-Earth announced earlier this year plans to invest RMB 1.0bn (USD 143.6mn) in building a new facility in Baotou, Inner Mongolia, dedicated to the production of high-performance rare earth permanent magnetic materials. The plant will support rising demand from emerging sectors such as humanoid robotics and new energy vehicles. Designed with an annual capacity of 20,000 tons, the new factory will increase the company’s total production capacity by 50% to 60,000 tons per year. Construction is expected to take approximately two years.
1H25 results review. Revenue increased by 4.33% YoY to RMB3.51bn in 1H25, compared with RMB3.36bn in 1H24. Net profit increased by 154.81% to RMB305.0mn in 1H25, compared to RMB119.7mn in 1H24. Basic EPS increased to RMB0.22 in 1H25, compared to RMB0.09 in 1H24. For the six months ended 30 June 2025, the company proposed to declare an interim dividend, planning to distribute a cash dividend of RMB1.8 (tax inclusive) per 10 shares to all shareholders.
Market consensus.
(Source: Bloomberg)
CGN Mining Co Ltd. (1164 HK): Rebounding uranium prices
CGN Mining Co Ltd is a company mainly engaged in the trading of natural uranium. The Company operates its business through three segments. The Natural Uranium Trading segment is engaged in the trading of natural uranium. The Property Investment segment is engaged in leasing business. The Other Investments segment is engaged in investment activities.
Tightening uranium markets supporting price upside. Uranium futures have surged above US$83/lb in 2025, driven by aggressive buying from physical uranium funds such as Sprott and Yellow Cake, alongside U.S. efforts to expand its strategic uranium reserve amid restrictions on Russian imports. At the same time, supply disruptions are emerging as Cameco cut its production guidance and Kazatomprom announced a 10% output reduction for 2026. With the World Nuclear Association forecasting a 28% rise in global uranium demand by 2030, CGN Mining is positioned to benefit from structurally higher uranium prices as both China’s reactor buildout and global energy security concerns drive investment in nuclear power.
Uranium future prices
(Source: Bloomberg)
China’s nuclear buildout driving long-term uranium demand. China is on track to nearly double its nuclear capacity to 200 GW by 2040, overtaking the U.S. by 2030 as the world’s largest nuclear power generator. With roughly half of the world’s 61 nuclear reactors currently under construction located in China, demand for uranium is set to accelerate as nuclear’s share of China’s power mix rises from 5% in 2024 to 10% by 2040. This rapid buildout not only underscores Beijing’s push to decarbonize while maintaining energy security but also creates a demand tailwind for uranium suppliers like CGN Mining, whose role as China’s state-backed uranium platform gives it a strategic advantage in securing supply.
CGN mining extends framework agreements with subsidiaries. CGN Mining Co. has announced the renewal of its framework agreements governing the sale of natural uranium and the provision of financial services with its subsidiaries. These agreements will be extended for an additional three years, starting January 2026. Classified as major and continuing connected transactions under the Hong Kong Listing Rules, the agreements are subject to approval by independent shareholders. They will also remain under annual disclosure and compliance review requirements. This extension supports operational continuity and reinforces CGN Mining’s integrated role in the CGN Group’s broader nuclear fuel and financial ecosystem.
1H25 earnings. Revenue fell by 58.0% YoY to HK$1.71bn in 1H25, compared to HK$4.07bn in 1H24. Net loss was HK$67.6mn in 1H25, compared to a net profit of HK$113.1mn in 1H24. Basis EPS dropped to (0.89) HK cents in 1H25, compared to 1.49 HK cents in 1H24.
Albemarle Corporation produces specialty chemicals for mobility, energy, connectivity, and health solutions. The Company offers critical ingredients used in grid storage, automotive, aerospace, conventional energy, electronics, construction, agriculture and food, pharmaceuticals, and medical devices. Albemarle serves customers worldwide.
Policy driven advantage in critical minerals. Albemarle is uniquely positioned to benefit from the U.S. government’s renewed focus on securing supply chains for critical minerals such as lithium and rare earths, deemed essential for defence, semiconductors and electric vehicles. With Washington deploying capital and exploring equity-style stakes to strengthen domestic mining, Albemarle’s U.S. operations stand to capture direct policy support and long-term demand visibility. Tax incentives like the 45X advanced manufacturing credit and exemptions for critical minerals reduce regulatory headwinds while reinforcing Albemarle’s strategic role in anchoring America’s lithium independence. Together with U.S. rate cuts that ease financing conditions and spur flows into commodities, Albemarle will continue to benefit from the structural backdrop that strengthens its long-term growth trajectory.
Cost discipline and diversification. While lithium prices have collapsed over 90% from their peak, Albemarle’s 2Q25 performance highlights strong execution, with adjusted EBITDA of US$336mn and a surprise profit supported by energy storage and specialties volume growth. The company expects to lower capex of between US$650-700mn and guided positive free cash flow in FY25. Its diversified earnings base, alongside a solid balance sheet positions Albemarle to withstand near-term market pressure. With global EV demand up 35% YoY, energy storage up 126% YoY, and liquidity improving under a softer rate environment, Albemarle is well positioned to benefit from the electrification cycle, amplified by U.S. policy tailwinds.
2Q25 results. Net sales declined by 7.0% to US$1.33bn in 2Q25, compared to US$1.43bn in 2Q24. Net income turned positive, rising 112.2% YoY to US$22.9mn in 2Q25, compared to -US$188.2mn in 2Q24. Adjusted EPS rose to US$0.11 in 2Q25, compared to US$0.04 in 2Q24. For FY25, the company maintains its outlook of an average lithium market price of US$9/kg, assuming current lithium market pricing persists for the rest of the year and expects to achieve positive free cash flow. It also projects energy storage sales volume to increase by 0% to 10% YoY and a reduced full year 2025 capital expenditure outlook to US$650-US$700mn.
Market consensus
(Source: Bloomberg)
Centrus Energy Corp. (LEU US): Increased demand for nuclear energy
Centrus Energy Corp. is a global energy company that supplies low enriched uranium (“LEU”) for commercial nuclear power plants. The Company, through its subsidiary, operates a uranium enrichment facility in Kentucky, United States.
Partnership to explore potential investment. Centrus Energy has formed a partnership with Korea Hydro & Nuclear Power (KHNP) and POSCO International to evaluate potential investments in the expansion of its uranium enrichment facility in Piketon, Ohio. The collaboration is intended to strengthen U.S.–Korea cooperation in civilian nuclear energy and includes exploring opportunities such as additional supply agreements for Low-Enriched Uranium (LEU) and High-Assay, Low-Enriched Uranium (HALEU) to support next-generation reactors. The initiative underscores the growing demand for U.S.-owned enrichment capacity and highlights another potential channel for private capital investment, aimed at enhancing supply diversity and competition in the nuclear fuel market.
High-assay low-enriched uranium is a bottleneck for nuclear energy. High-Assay Low-Enriched Uranium (HALEU) is uranium fuel with a concentration of 5% to 20% U-235, offering higher energy output while reducing nuclear waste compared to traditional low-enriched uranium. HALEU is suitable for next-generation advanced reactor designs, particularly small modular reactors. The innovation and efficiency improvements in the nuclear industry rely on the application of HALEU, with several countries promoting its research and development. The application for HALEU production licenses is stringent, involving technical, production equipment, and facility factors. The company is the only one licensed by the U.S. Nuclear Regulatory Commission to produce HALEU, which is its competitive advantage.
2Q25 results. Revenue declined by 18.3% to US$154.5mn in 2Q25, compared to US$189.0mn in 2Q24. Net income fell slightly by 5.56% to US$28.9mn in 2Q25, compared to US$30.6mn in 2Q24. Basic EPS fell to US$1.63 in 2Q25, compared to US$1.89 in 2Q24. As of 2Q 2025, the company has a total backlog of US$3.6bn, with delivery deadlines extending to 2040. This includes low-enriched uranium sales agreements worth US$2.1bn and US$900mn in technical support services.
(Source: Bloomberg)
(Source: Bloomberg)
