Press Metal to focus on gaining economies of scale

“Coupled with stable alumina and carbon costs, the expansion will strengthen the group’s low-cost model and help the group weather the challenging outlook in the current low aluminium price environment, ” said Affin Hwang Capital in a report where it has upgraded the stock to a “hold” with a higher target price of RM4.73 from RM3.80.

PETALING JAYA: Press Metal Aluminium Holdings Bhd’s low-cost business structure would further strengthen after it gains economies of scale through ongoing expansion in Samalaju, Sarawak and Indonesia.

This in turn would support the group’s earnings amidst the uncertainties in the global aluminium market, said Affin Hwang Capital.