Affin Hwang Research is optimistic about the company’s prospects.
PETALING JAYA: Press Metal
Aluminium Holdings Bhd is expected to register higher earnings over the coming years despite the anticipation of a relatively stronger ringgit versus the US dollar, analysts say.
Affin Hwang Research is optimistic about the company’s prospects in tandem with favourable aluminium prices coupled with alumina prices easing ahead as global supply increases.
The research house also expects carbon anode prices to rise 13% quarter-on-quarter (q-o-q), amid higher petroleum coke (petcoke) prices in China, which are fully procured at spot prices and are not hedged.
Affin Hwang Research fine-tuned its 2025 to 2027 earnings per share (EPS) projections for Press Metal to factor in better aluminium pricing.
The research house expects Press Metal’s results for the second quarter of this year to come in within the RM350mil to RM450mil range, representing another q-o-q decline due to the higher raw material costs.
Subsequently, it expects the second half of this year (2H25) to be stronger as input costs ease from a high base, coupled with resilient realised aluminium prices.
The research house lifted its target price for Press Metal to RM5.90 from RM5.60 a share, based on an unchanged price-earnings multiple of 24-times applied to 2026 EPS, while maintaining its “buy” call.
