RHB lifts earnings estimates on Press Metal

KUALA LUMPUR: RHB Research has raised its earnings forecasts on Press Metal Aluminium Holdings Bhd on account of higher London Metal Exchange aluminium prices continuing to surprise on the upside.

"PMAH expects the recovery in LME aluminium prices to extend into 2021, due to healthy supply-demand conditions under a reflationary macroeconomic environment.

"This is underpinned by strong persistent demand by China, which recently became a net importer of primary aluminium, amid tightening supply," said RHB.

Meanwhile, ex-China capacity additions are expected to be limited next year, aside from Press Metal's own Samalaju Phase 3 expansion while the global decarbonanisation agenda will translate into supply discipline.

The research house increased FY21 to FY22 earnings by 9% after raising its forecast 2021-2022 realised LME prices to US$2,000-2,050 while imputing higher alumina and carbon anode raw material prices in tandem.

RHB reiterated that the stock was a top country and sector pick, raising its target price to RM8.50 from RM8 previously.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Did you find this article insightful?


100% readers found this article insightful

Next In Business News

Morgan Stanley CEO's annual pay rises by over 20%
‘Unstoppable’ luxury stocks remind some investors of US tech
Ambani’s Reliance doubles down on 5G pledge after record profit
PUNB offers payment deferment, rental discount
CPO futures may undergo technical correction next week
Blackstone-backed Patria eyes expansion in Latam, Asia
METALS: Tin, aluminium, copper prices down
Oil price falls on China's COVID-19 cases, high crude build
IBM, Intel slump weighs on Wall St as coronavirus concerns rise
GLOBAL MARKETS-Weak data, earnings drag stocks lower

Stories You'll Enjoy