Press Metal / Koon Poh Keong

[winston]

vested

Press Metal Aluminium Holdings (PMAH MK)

Launches New Alumina Refinery JV In Indonesia

PMETAL has entered a JV to establish its second alumina refinery in Indonesia, following the earlier PT Bintan investment.

With this JV, PMETAL will be able to secure at least 75% of its annual alumina needs, enhancing operational efficiency and driving long-term growth.

While this project will take 2.0-2.5 years to complete, our initial estimate suggests that this JV may contribute at least RM200m-300m in profit through PMETAL's 80% stake.

Maintain BUY. Target price: RM6.30.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... (PMAH%20MK)%20240919.pdf?utm_medium=email&_hsenc=p2ANqtz-_unB_H6QOP6jmHAGWFdsQq_ZANrzG-gUF8VE26tMRxDRUdCBXZhi2mplv5gPl9ZxmdJPdI7WiwYhcVj6Ov47g9iYVtaQ&_hsmi=325313557&utm_content=325313557&utm_source=hs_email

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vested

Press Metal’s 3Q earnings could be softer from stronger ringgit, RHB IB flags

By Jason Ng

Every 1% change in the rate of the ringgit against the US dollar affects Press Metal’s bottomline by 1.8%-2.0%.

The July-September quarter is also likely affected by weaker aluminium prices, higher alumina costs, and a fire at its Samalaju factory.

The ringgit has also appreciated some 12% against the US dollar from the start of July.

Alumina costs remained elevated amid tight supply at US$508.50 per tonne in the third quarter and “we expect prices to remain high before normalising in 2025, due to increasing supply” from refinery expansions in Indonesia and India.

Prices of aluminium traded on the London Metal Exchange, meanwhile, have declined nearly 6% in the third quarter, from the second quarter.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/728883

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vested

Press Metal to see double-digit earnings growth in FY2025 — HLIB

By Sankita Jayanandan

Expects stable aluminium prices, alongside an expected drop in alumina prices.

Company likely to report weaker earnings for 3Q2024, impacted by a 5.5% drop in average aluminium prices to US$2,385/MT (metric tonne) and a 18% increase in alumina prices.

Expects Press Metal’s 3Q2024 earnings to come in between RM325 million and RM375 million, representing a 27% to 37% quarter-on-quarter (q-o-q) drop.

Year-on-year (y-o-y), the numbers are expected to grow by 6% to 22%, coupled with the appreciation of the ringgit against the US dollar.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/729528

[winston]

vested

Press Metal likely to record higher FY25 earnings

Press Metal Aluminium Holdings Bhd is expected to face challenges in the second half of the year (2H24) before charting commendable earnings growth in the financial year 2025 (FY25).

“For every 10% decrease in the US dollar-ringgit exchange rate (when the ringgit appreciates), the group’s net profit will lower by RM50mil for 2H24.

Alumina prices were up 18% quarter-on-quarter in 3Q24, driven by persistently strained alumina supply due to output cuts by Alcoa and Rio Tinto’s refineries in Australia.

“The previously idled capacity of aluminium refineries in Yunnan are now back in full swing,” the research.

9% of its smelting capacity was burned in the fire incident at phase three Samalaju in mid-September. As the repair works would take around four months, this would translate to 3% sales volume loss in FY24.

Bulk of its energy costs are locked in via 15 to 25-year power purchase agreements.

Source: The Star

https://www.thestar.com.my/business/bus ... 5-earnings

[winston]

vested

ESG2.0: Improved ESG scoring

Above average ESG scoring

We revisited PMETAL’s ESG disclosures post-release of its FY23 Annual and Corporate Governance Reports and have assigned an ESG score of 63 (out of 100), which makes its ESG scoring above average, an improvement from its last score of 55 for FY22.

We maintain our BUY call on PMETAL with an unchanged TP of MYR5.70, pegged to a 25x PER (approx. -1SD to 5Y 12M fwd mean) on FY25E EPS.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/411871.pdf

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not vested

Press Metal soars after China removes tax rebate for aluminium exports

By Isabelle Francis

In the near term, the cancellation of rebates will make Chinese aluminium more expensive on the international market and could lead to a reduction in export volumes.

“End-users might also have to face higher costs for their raw material,” affecting automotive, construction and packaging industries.

Tax rebate that covers over five million tonnes of exports of the metal.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/734267

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vested

Press Metal profit jumps 31.4% in 3Q; declares 1.75 sen dividend

Net profit jumped 31.4% to RM402.3mil in the third quarter ended Sept 30, compared with RM306.1mil achieved a year ago.

Revenue for the quarter rose 9.8% to RM3.78bil compared to RM3.44bil in the same quarter of the preceding year, primarily driven by higher aluminium prices.

Securing alumina assets is essential for the long-term success of an aluminium smelter, as alumina is a key raw material.

Source: The Star

https://www.thestar.com.my/business/bus ... n-dividend

[winston]

not vested

3Q24: Within expectations, repair works for P3 in progress

Results in line; maintain BUY @ MYR5.76 TP

PMETAL’s 3Q24 results was in line with ours but above consensus.

However, we adjust our FY24-26E earnings forecasts by -2%/+1%/+8% to account for:
i) lower sales volumes due to the fire incident in P3 Samalaju (full-startup pushed back to Feb 2025);
ii) higher alumina price assumption; and
iii) lower carbon anode price assumption – see Figure 4.

As such, our TP is lifted slightly to MYR5.76 (from MYR5.70), pegged to an unchanged PER of 25x (approx. -0.5SD @ 5Y mean) on FY25E EPS. Maintain BUY.

Source: Maybank

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/423604.pdf

[winston]

not vested

Press Metal Aluminium Holdings (PMAH MK) 9M24: Above Expectations; Strong Associate Contribution

9M24 results came in above expectation mainly due to stronger than expected profitability from its associate, PT Bintan.

We believe further upside will be supported by structural supply constraints and a demand recovery, both driven by factors in China.

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.

Upgrade 2024 earnings by 9%. Maintain BUY. Target price: RM6.30.

Source: UOBKH

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://39646150.fs1.hubspotusercontent-na1.net/hubfs/39646150/Research/Press%20Metal%20Aluminium%20Holdings%20(PMAH%20MK)%20241202.pdf?utm_medium=email&_hsenc=p2ANqtz-_Er8T7Do99KBxQ2h4Ux0rTX-Swnl73Gp97KxpXBYULm3XjPF9rxVmRX2_LI6ymK330KRKCahqBQrirJABboFtqNZjpbQ&_hsmi=336489875&utm_content=336489875&utm_source=hs_email

[winston]

not vested

9M24: Above Expectations; Strong Associate Contribution

9M24 results came in above expectation mainly due to stronger than expected profitability from its associate, PT Bintan.

We believe further upside will be supported by structural supply constraints and a demand recovery, both driven by factors in China.

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.

Upgrade 2024 earnings by 9%. Maintain BUY. Target price: RM6.30.

Source: UOBKH

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://39646150.fs1.hubspotusercontent-na1.net/hubfs/39646150/Research/Press%20Metal%20Aluminium%20Holdings%20(PMAH%20MK)%20241202.pdf?utm_medium=email&_hsenc=p2ANqtz-_Er8T7Do99KBxQ2h4Ux0rTX-Swnl73Gp97KxpXBYULm3XjPF9rxVmRX2_LI6ymK330KRKCahqBQrirJABboFtqNZjpbQ&_hsmi=336489875&utm_content=336489875&utm_source=hs_email