Press Metal likely to do well with cost saving measures, higher prices

Energy intensive: Press Metal Bhd’s aluminium smelting plant is the first to start operations in Samalaju Industrial Park.

PETALING JAYA: Earnings at Press Metal Bhd, one of the biggest aluminium producers in the region, is projected to reach a new high this year on cost saving measures and higher product prices, analysts said, even as the company’s smelters in Sarawak are already running at full capacity.

The prospect of increased profits had propelled the stock 72% higher so far this year at RM2.73 last Friday. RHB Research, in a note on Friday, sees a further 30% upside from current level.