Press Metal / Koon Poh Keong

Press Metal / Koon Poh Keong

Postby winston » Mon Sep 29, 2014 5:45 pm

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Press Metal shares, warrants up after recent selldown

KUALA LUMPUR: Shares of Press Metal and its warrants jumped at mid-morning on Monday, after RHB Research recommended a Buy on the group after its recent selldown.

At 11.10am, its shares rose 42 sen to RM6.27 with some 2.97 million shares done between RM5.90 and RM6.37.

Its warrants PMetal-WC was up 49 sen to RM4.28 with 855,000 units done between RM3.90 and RM4.34.

The FBM KLCI was up 0.45 of a point to 1,840.95. Turnover was 1.123 billion shares valued at RM519.84mil. There were 315 gainers, 273 decliners and 356 counters unchanged.

RHB Research in a note said it continued to like Press Metal, as it is a world-class low-cost smelter in the first quartile of a global cost curve, thanks to its competitive 25-year power purchase agreement (PPA), state-of-the-art smelting technology and strategic plant locations.

"The improved market dynamics are timely as its smelters have returned to optimum production levels.

"As we believe the recent selldown in its share price was not on a fundamental basis, we recommend investors to Buy on weakness," it said.

It noted that its RM8.30 fair value is derived from a 10% discount to a fully-diluted DCF, implying undemanding 2.4 times/2.1 times P/BVs and 17.0 times/11.9 times P/Es on FY14F/15F estimates respectively.

Considering that the company has only used up one-third of its landbank in Samalaju, RHB noted that Press Metal will continue to explore opportunities to expand its smelting capacity – although all this is subject to the availability of power from Sarawak Energy.

Source: The Star
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Re: Press Metal

Postby winston » Thu Oct 23, 2014 6:38 pm

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Press Metal upbeat on aluminium industry outlook

KUALA LUMPUR: Press Metal Bhd is upbeat on the outlook of the aluminium industry driven by supply shortage amid higher demand from various industries including car, construction, aviation and cable.

Group chief executive officer, Datuk Koon Poh Keong, said despite the forecast deficit of one million tonnes this year, more industries were moving to use it primarily due to the tighter regulation on emission control in the Western countries.

"The price of aluminium has been holding well. It is at US$2,000 a tonne now and next year is set to be US$2,200," he told reporters after the company's extraordinary general meeting on Thursday.

Last year, the price stood at US$1,700 per tonne.

He said car sector was one of the major industries shifting from steel-based to aluminium as seen by US Ford Motor Co's recent move to change its truck model.

Apart from the car sector, he said, construction sector was also using more aluminium in the construction of high-rise building as the metal was lighter and maintenance free.

"Other sectors which also used a lot aluminium are aviation, cable and electronics such as smartphones," he said.

Koon said aluminium, which required less energy to melt and recycle, was also deemed to be greener. Regionally, he said, the demand for aluminium was expected to be around six million tonnes this year.

Press Metal and another company from Indonesia, the only two companies in the region producing aluminium excluding China's producers, stood at around 600,000 tonnes, he said.

According to Koon, Press Metal has a maximum capacity of 440,000 tonnes from two plants, one in Mukah and one in Bintulu, Sarawak. He said China barred its producers from exporting aluminium because of the high energy cost while the more advanced countries, such as Japan and South Korea, did not produce their own aluminium.

On prospects, he said, Press Metal was looking to venture more into the car sector by providing value-added products such as alloy wheels.

"We aim to double the revenue contributions from the car sector to 30% next year from up to 15% this year," he said.

Koon said currently up to 85% of the company's products were exported.

He said the company was also maintaining its dividend policy of between 30% and 50% per cent of net profit.

Press Metal, founded in 1986 and based in Shah Alam, Selangor, is listed on Bursa Malaysia under the Main Market.

Source: Bernama
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Re: Press Metal

Postby winston » Fri Oct 31, 2014 8:11 am

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Press Metal posts Q3 turnaround profit of RM82.6mil

KUALA LUMPUR: Press Metal Bhd recorded earnings of RM82.6mil in the third quarter ended Sept 30, 2014 following losses of RM1.6mil in the corresponding period last year, with revenue jumping 29.5% to RM1.028bil from RM794.5mil.

It said profitability was up due to higher aluminium selling prices and higher production output at its Mukah and Bintulu smelting plants.

Also, the company had in Q3 2013 incurred a loss amounting to RM51.6mil from the disposal of Hubei Press Metal Huasheng’s assets.

The board of directors declared a dividend of 3 sen per share, payable on Dec 13, 2014.

Earnings per share in the quarter under report came to 15.68 sen. It is 32.53 sen in the nine months so far, against 8.58 sen in first nine months of last year.

Cumulative earnings for the three quarters so far amounted to RM170.7mil – up three times from the RM43.6mil in the same period last year. Revenue improved 26.4% to RM2.926bil from RM2.314bil.

Press Metal said it was positive about its financial performance for the current financial year.

“The demand for aluminium remained strong in the third quarter, and the momentum is expected to continue till end of the year. Thus, barring unforeseen circumstances, the board foresees that the group should achieve significant improvement in financial results for the year,” it said.

Source: The Star
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Re: Press Metal

Postby winston » Wed Nov 19, 2014 10:01 pm

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Press Metal surges following additional power supply

KUALA LUMPUR: Shares of Press Metal surged at mid-afternoon on Wednesday after the group secured an additional 500MW of electricity for the proposed Phase III expansion of its aluminium smelter, which will be next to the current smelter in Samalaju Industrial Park, Sarawak.

At 3.05pm, its shares rose 23 sen to RM3.34 with some 2.19 million shares done between RM3.12 and RM3.34.

The FBM KLCI was up 6.49 points to 1,824.87. Turnover was 1.428 billion shares valued at RM1.07bil. There were 389 gainers, 299 decliners and 329 counters unchanged.

Press Metal said on Wednesday it had signed a term sheet with Sarawak Energy Bhd’s unit Syarikat Sesco Bhd which would lead to a 25-year power purchase agreement and a connection deal.

Press Metal owns 80% of the Samalaju smelter while Sumitomo Corporation owns the remaining 20%.

Source: The Star
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Re: Press Metal

Postby winston » Thu Nov 20, 2014 9:55 am

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RHB Research maintains Buy on Press Metal

KUALA LUMPUR: RHB Research has reiterated its Buy call on Press Metal with a target price of RM5.75, it said in a note on Thursday.

The research house said it was excited over the news of the capacity expansion, as it is timely for Press Metal to ride on the bottoming out of aluminium prices and expand its presence in the aluminium industry.

"Its projected record earnings indicate that the company can fund this project using internally-generated funds together with bank borrowings, while maintaining its generous dividend payout policy of 30%-50%," it said.

It added that Press Metal Bintulu, has inked a term sheet with Syarikat Sesco for the supply of an additional 500 megawatts (MW) of power to PMB to undertake its proposed Phase III expansion, which would double the present aluminium smelting capacity at its plant in Samalaju, Sarawak to 640,000 tonnes per annum (tpa).

Together with its smelting plant in Mukah, the expansion could see the group expanding its smelting capacity to 760,000 tpa, which is about 1.5% of global primary aluminium consumption.

Press Metal already runs successful aluminium smelters in Sarawak, which are in the first quartile of the global production cost curve, RHB said.

"Although the tariff for the additional power supply is confidential, we understand from management that the profitability of Phases II and III of the smelter is similar, after imputing alower capex and potentially greater efficiency, for the new plant.

"Meanwhile, the first drawdown of 330MW will start in end-2015, while the remaining 170MW will be drawn down from early-2018 onwards," it said.

Source: The Star
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Re: Press Metal

Postby winston » Wed Dec 10, 2014 6:02 am

Press Metal slides as aluminium prices fall to May low

KUALA LUMPUR: Shares of Press Metal fell to a low of RM2.91 on Tuesday as prices for aluminium fell on weaker demand.

At 11.43am, it was down 11 sen to RM2.95. Turnover was 656,300 shares done at prices ranging from RM2.91 to RM3.04.

The FBM KLCI fell 5.73 points or 0.33% to 1,735.11. Turnover was 623.99 million shares valued at RM604.79mil. Losers beat gainers 521 to 140 while 231 counters were unchanged.

Reuters reported Shanghai aluminium plumbed its lowest level since May on Tuesday as growing overcapacity and the shaky outlook for demand in China curbed buying that had already begun to wane towards year-end.

"Supply is growing steadily, with new capacity and idled plants (restarting)," said analyst Paul Adkins of consultancy AZ China in Beijing. "Demand is sputtering. It's a combination of weak macroeconomic signals and pre-year-end wind-down."

The most traded February aluminium contract on the Shanghai Futures Exchange had fallen as far as 13,300 yuan (US$2,151) a tonne by 0219 GMT, down 0.8% to its lowest level since May 16.

Source: The Star
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Re: Press Metal

Postby winston » Thu Feb 25, 2016 9:06 am

KOON POH KEONG, 54, started an aluminum-extruding operation in 1986 and has since built his Press Metal into Southeast Asia’s largest integrated aluminum producer.

With smelters in Malaysia and China, it’s one of the largest exporters of ingots and billets in the world; its footprint extends to Australia, Europe, the Middle East and North America.

The company’s shares, however, have been slipping lately amid a global aluminum glut, keeping him out of the wealth club for at least another year.

Source: Forbes
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Re: Press Metal / Koon Poh Keong

Postby winston » Sun Feb 05, 2017 8:05 am

DATUK KOON POH KEONG and family
Flagship: Press Metal Bhd
Net worth: RM3.7bil

PRESS Metal Bhd’s Poh Keong and his family saw the biggest rise in fortunes in 2016 when shares of the aluminium producer more than doubled.

The family is the controlling shareholder of Press Metal.

Shares in the company rose from 75 sen (ex-split and bonus) to RM1.59 at the end of last year, bolstering the family’s wealth to RM3.71bil from RM1.44bil in 2015.

The 56-year-old group chief executive officer has been one of the corporate sector’s rising stars.

A graduate in electrical engineering from the University of Oklahoma in the United States, Poh Keong formed the company as an aluminum-extruding operation in 1986.

In a short span of time, it grew to become the largest aluminium smelter in the region and probably one with the lowest operating cost.

Economies-of-scale, coupled with a low-cost operating model, has helped the company to stay in the black even when commodity prices came under pressure.

There were challenges along the way. In 2013, Press Metal’s first aluminium smelting plant in Mukah,Sarawak, almost came to a complete shutdown due to a state-wide blackout that damaged its smelting pots.

During that year, it provided an estimated RM90mil for both operating losses and assets written off arising from the damage done to its Mukah plant.

Still, it managed to report a profit of RM11.57mil for its financial year 2013 (FY13), although it was a drastic drop from previously.

In 2011, the company kick-started the development of its phase two aluminium smelter in Samalaju Industrial Park, Bintulu, Sarawak.

And in June last year, it completed the phase three expansion of its smelter plant in Samalaju, Sarawak, that has increased its overall annual capacity by 35% and 40% to 760,000 tonnes.

With the full commissioning of its new smelter at Samalaju, Press Metal is expected to continue improving its net margins in FY16-17E to 6.2%-7.3% from 5.4% in FY15.

There is further room for margin expansion in 2017, say some analysts in view of the greenback’s appreciation, rising operational efficiency due to better full-year utilisation, and increased volume of higher-margin aluminium alloy products.

For the nine months ended Sept 30, it made a net profit of RM363.67mil, a whopping rise from RM97.37mil registered in the same period before.

Last year, aluminium prices recovered strongly by 16% to US$1,733 a tonne.

For 2017, US-dollar aluminium prices are expected to stabilise at the US$1,600 to US$1,800 level with an average of US$1,700 per tonne, according to reports.

Poh Keong has four other siblings sitting on the company’s board and involved in the running of the company.

One of them, Datuk Koon Poh Tat, 58, is the co-founder of Press Metal.

Poh Keong has a direct 16.99% stake in the company, while 26.70% is held indirectly.

The stock’s market cap stood at RM5.88bil as of Dec 31, 2016.

Source: The Star
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Re: Press Metal / Koon Poh Keong

Postby winston » Mon Jan 08, 2018 8:58 pm

PRESS METAL ALUMINIUM HOLDINGS BHD

Buy (maintained)
Target Price: RM5.95

ALUMINIUM prices have rebounded to hover above US$2,200 (RM8,786) per tonne after a temporary blip in early December 2017.

RHB Research believes the weaknesses are mainly due to seasonal factors, given slower economic activities in China during the winter months.

“As such, we make no changes to our aluminium price assumptions of US$1,925 (RM7,688) per tonne for 2018 and US$2,118 (RM8,459) per tonne for 2019.

“This is as we are also aware that most of the 2018’s – and around one-third of 2019’s – positions have been hedged.”

The research house said it sees potential upside on the aluminium prices, as currently half of the smelters in China are still loss-making from rising energy costs due to higher coal prices.

RHB Research said it expects another record year for Press Metal.

“We are expecting another record year in 2018 for Press Metal.

“Key drivers include Samalaju Port, which was commissioned last year, would help to cut inland logistics and shipping costs,” it said.

The research house added that increased value-added production will also enhance profitability, which is estimated to increase to 50% (from 30%) by end-2018.

RHB Research added that the 20% joint venture with Sunstone Development Co Ltd of China will help reduce carbon costs in 2018.

Potential upside in aluminium prices, with spot contracts at the London Metal Exchange hovering at above the US$2,200 (RM8,786) per tonne mark, will also be a boost to the company, said the research house.

Source: RHB Research

https://www.thestar.com.my/business/bus ... AZ1gJlb.99
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Re: Press Metal / Koon Poh Keong

Postby winston » Mon Mar 12, 2018 5:17 pm

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US tariffs have no direct impact on PMetal

8 Mar 2018

PETALING JAYA: The potential tariff on primary aluminium imports by the United States has no direct impact on Press Metal Aluminium Holdings Bhd (PMetal).

According to AmInvestment Bank and UOB Kay Hian, PMetal exports less than five million tonnes of extrusion goods to the United States, or less than 1% of the company’s sales.

However, AmInvestment Bank believed that PMetal would still feel the impact of lower aluminium prices in the international market if the tariff takes effect, irrespective of whether it exports its products to the United States.

“Assuming the tariff is to take effect, theoretically, aluminium in the US domestic market will trade at a 25% and 10% premium to international prices.

“This could prompt US aluminium producers to restart their idle capacities, which are not commercially viable based on the current international prices of steel and aluminium.

“We estimate that the US idle aluminium production capacity stands at about one million tonnes per annum, translating to about 50% to 60% of the total installed aluminium production capacity in the US,” said AmInvestment Bank.

Meanwhile, UOB Kay Hian opined that there would be minimal impact from higher alumina prices on PMetal due to hedging policy.

The research house said although alumina prices, which account for more than one-third of cost of goods sold, fell to below US$400 per tonne currently from the fourth quarter 2017 high of US$450 to US$500 per tonne, prices are still high compared with US$200 to US$350 per tonne in 2016.

“However, we are not concerned about the impact in the near to medium term, given that PMetal has locked in the bulk of its alumina requirement for 2018 at low prices.

“For its 2019 requirement, we opine that there is still ample time to lock in its alumina requirement when prices turn favourable,” said UOB Kay Hian.

Meanwhile, the price of carbon anode has seen a significant rise, reaching a seven-year high of 4,500 yuan in December 2017, from 2,650 yuan in November 2016.

PMetal said the sharp increase in anode prices suggested that a further increase might not be likely, but current high prices might prolong.

AmInvestment Bank revised up the carbon anode cost price in FY18 to FY20 by 10%, 5% and 8%, to US$560, US$600 and US$660, respectively.

For every 1% drop in the US dollar to ringgit exchange rate, it is estimated that the company’s overall earnings will be eroded by 2%, to which AmInvestment Bank revises its dollar to ringgit assumptions to 4.10 in FY18 and 4.00 in FY19 to FY20, from 4.35 in FY18 and 4.20 in FY19 to FY20 previously.

Press Metal closed 4.4% lower at RM4.95, trading on a volume of 15.1 million shares.

Source: The Star

https://www.thestar.com.my/business/bus ... on-pmetal/
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