PETALING JAYA: Aluminium extrusions manufacturer PA Resources Bhd
’s competitive edge in North America has been enhanced by the recent favourable outcome of an anti-dumping proceeding initiated by the US Department of Commerce.
Rakuten Trade Sdn Bhd, which has maintained financial year ending June 30, 2025 (FY25) and FY26 earnings forecasts at RM57.7mil and RM63.8mil, respectively, said the recent zero-tariff ruling from the US Department of Commerce following an anti-dumping investigation is “a major breakthrough”.
“This favourable decision not only eliminates a significant cost barrier, but also enhances the company’s competitiveness in one of its largest export markets.
“This development marks as a key driver for future growth trajectory hence placing PA Resources in an enviable position,” the research house said in a report.
Rakuten Trade has a “buy” call with a target price of 50 sen based on 13 times price-earnings ratio (three-year average) over the FY25 earnings per share.
The company, which is currently operating at 3,200 tonnes per month, “is increasing its production capacity to meet the growing demand from sectors like automotive and construction.
It is upgrading an existing fabrication line and planning a phased capacity expansion that can more than double output over the next 18 months.
The first phase of the new expansion will add between 2,000 and 2,500 tonnes, with total capacity across all phases expected to reach 7,000 tonnes.
The research house said the global shift towards sustainable materials in the construction, automotive and renewable energy sectors bode well for the company because aluminium’s lightweight and recyclable properties make it a preferred choice for green construction projects and electric vehicle manufacturing, creating long-term demand growth.
“Additionally, China’s anticipated fiscal stimulus measures to boost infrastructure projects present further opportunities for PA Resources.
“The company’s strategic positioning and partnerships in Asia further enhances its market penetration amid the increasing demand within the region,” it noted.
“PA Resources’ balance sheet is solid, with a net cash position of RM60.7mil, providing ample flexibility for future investments and expansion plans.
“This strong financial foundation allows the company to capitalise on growth opportunities while maintaining a conservative risk profile,” it said.
The company acquired 18 acres of leasehold land in Kuala Selangor earlier this year costing RM21mil for the expansion of its existing upstream and downstream businesses.
