Press Metal / Koon Poh Keong

[winston]

not vested

HLIB sees Press Metal notching stronger 2Q earnings on higher aluminium prices

By Justin Lim

Press Metal Aluminium Holdings Bhd’s (KL:PMETAL) core earnings in the second quarter could potentially surge by up to 20% quarter-on-quarter (q-o-q) and as much as 60% on year-on-year thanks to higher prices,

The research firm noted that the largest aluminium smelter in Southeast Asia by capacity also had a better hedging position at US$2,600 versus US$2,300 in FY2023.

Alumina price had increased 14% q-o-q due to tightening supply.

On downside risks, the research house cited subdued restocking activities in the near term due to elevated prices amid weak industrial demand, and continued capacity resumption in Yunnan — as hydropower supply returns following easing droughts.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/719027

[winston]

vested

2024-07-18

Press Metal - Positive Momentum to Continue; Upgrade to BUY

Price Target: 6.67

U/G to BUY from Neutral, new MYR6.67 TP (DCF) from MYR5.14, 11% upside, c.1% FY25F yield.

We believe the narrowing surplus and increasing demand for aluminium will further drive up LME aluminium ASPs.

Consequently, we expect strong growth momentum to continue into 2Q24, driven by higher ASPs.

Our DCF-derived TP implies 27.5x2025F P/E vs the 5-year mean of 25.5x – predicated by increasing awareness towards lower- carbon footprints smelters and the gradual recovery in global demand.

Source: RHB

https://klse.i3investor.com/web/priceta ... arch/71972

[winston]

vested

2024-05-31

Press Metal Aluminium - Improved Aluminium Price Outlook

Price Target: 6.35

PMETAL’s 1QFY24 results beat expectations.

Its 1QFY24 core net profit jumped 48% YoY on a strong ASP and better contribution from associate PT Bintan.

Aluminium prices will be buoyed by the recovery in demand in China while supply will be capped by geopolitical tensions.

We raise our FY24-25F net profit forecasts by 34% and 36%, respectively, lift our TP by 30% to RM6.35 (from RM4.90) and upgrade our call to OUTPERFORM from MARKET PERFORM.

Source: Kenanga

https://klse.i3investor.com/web/priceta ... arch/71658

[winston]

vested

1Q Earnings

Revenue: +18%; RM 3.6b
EPS: +44%; RM 408m
Net Asset: RM 0.84

https://www.bursamalaysia.com/market_in ... id=3451977

[winston]

Press Metal Aluminium Holdings (PMAH MK) Favourable Aluminium Supply-demand Dynamics
Amid Near-term Cost Pressures While we expect sequentially stronger 2Q24 results, PMETAL might face short-term headwinds from rising alumina prices in 3Q24.

Nevertheless, this will be negated by a stronger VAP contribution, driven by the group's aggressive expansion and relatively lower carbon anode prices.

We believe there could be more upside, underpinned by a demand recovery, structural supply tightness and a reversal in the US interest rate cycle.

Maintain BUY. Target price: RM7.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Press Metal in for solid earnings growth on strong aluminium prices

Press Metal is set to achieve a solid double-digit earnings growth in FY24.

The research house expected Press Metal’s core earnings for the second quarter of 2024 (2Q24) to come in at RM480mil to RM500mil, up 15%-20% quarter-on-quarter (q-o-q) and 53%-60% year-on-year (y-o-y).

HLIB said the average London Metal Exchange aluminium price rose 15% q-o-q to US$2,523 per tonne, boosted by sanctions on Russian aluminium by the West, better-than-expected demand growth from China and continued supply constraints in China and Europe during the quarter.

HLIB noted that Press Metal had a better hedging position of 30% ratio at US$2,600 versus US$2,300 in FY23. However, the cost of aluminium production could have risen as alumina prices continued its uptrend in 2Q24.

Alumina prices continued its uptrend in 2Q24, gaining 14% q-o-q due to tightening supply induced by Alcoa’s suspension of its Kwinana site in Australia and also Rio Tinto’s force majeure declaration on its alumina supplies from Australia.

Source: The Star

https://www.thestar.com.my/business/bus ... ium-prices

[winston]

vested

2Q Results

Revenue: +5%; RM 3.96b
EPS: +65%; 6.14; RM 505m
Net Asset: 0.87

https://www.bursamalaysia.com/market_in ... id=3478749

[winston]

vested

Press Metal's 2Q net profit surges as higher aluminium prices, stronger USD help

By Jason Ng

Net profit surged 65% in the second quarter thanks mainly to higher price sold and stronger US dollar that boosted export receipts. Net profit for the three months was RM505.83 million .

Revenue for the quarter rose 5.2% year-on-year to RM3.95 billion from RM3.76 billion.

Rising alumina prices from temporary supply interruptions are lifting costs.

Aluminium prices are still up more than 6% year-to-date thanks to supply constraints from sanctions on Russian as well as demand growth from China.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/724825

[winston]

vested

Press Metal Aluminium Holdings (PMAH MK) 1H24: Strong Results;

High LME Aluminium Prices Drive Earnings

1H24 results came in within expectations, with 2Q24 earnings driven by higher all-in aluminium prices and stronger associate contributions.

We believe further upside will be underpinned by a structural supply tightness and a reversal in the US interest rate cycle.

Every US$100/tonne increase to our LME aluminium price assumption of US$2,500/tonne could increase PMetal’s earnings by 14% in 2025.

Cut 2024/25/26 earnings by 16%/11%/10% respectively.

Maintain BUY. Target price: RM6.30.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

Press Metal says 3% of smelting capacity affected by fire incident

By Adam Aziz

“Approximately 9% of our total smelting capacity (across Samalaju and Mukah) was impacted,” it said.

“We estimate that it will take approximately four months to restore operations of the damaged pots,” Press Metal said.

“Hence, on a full-year basis, this impacts about 3% of our annual smelting capacity. The affected assets are adequately covered by insurance,” the firm added.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/726164