PETALING JAYA: Malaysia Smelting Corp
Bhd’s (MSC) stronger-than-expected financial year 2025 (FY25) performance positions the group to capitalise on firm global tin fundamentals.
Structural demand from electronics, clean energy, artificial intelligence and data centres continues to outstrip supply, providing a supportive backdrop for prices, Apex Research said.
It noted that while output from Myanmar and Indonesia is showing signs of recovery, regulatory and geopolitical risks still pose constraints to global tin supply.
“Against this backdrop, MSC stands to benefit from improved ore visibility and efficiency gains following the consolidation of smelting operations at Pulau Indah,” the research house said in a report.
It added that the group’s ongoing closure of its Butterworth plant is expected to deliver structural cost savings, lower manpower requirements, improved operational efficiency and a reduced carbon footprint.
On the mining front, the group is focused on lifting daily output, expanding resources and enhancing recovery rates through modernised processing methods and potential joint ventures.
Overall, Apex Research said it sees “a clear pathway for earnings recovery and margin expansion into FY26 to FY27.”
In the fourth quarter of FY25, MSC posted a core net profit of RM38mil, bringing its full-year figure to RM80.4mil.
It declared a final single-tier dividend of four sen, bringing total dividend per share declared for FY25 to eight sen per share.
Apex Research said MSC’s results exceeded expectations, accounting for 153% of its full-year forecast and 143% of consensus estimates.
The outperformance was driven by firmer realised tin prices, stronger sales, the encashment of higher-margin tin intermediates and structural cost savings following the closure of the Butterworth plant.
“Global tin fundamentals remain favourable, underpinned by structural demand growth, while improving ore visibility and ongoing efficiency gains at Pulau Indah reinforce margin resilience and earnings sustainability.
“We maintain a ‘buy’ call on MSC with an unchanged target price of RM2.14, derived from 13 times FY26 forecast earnings per share of 16.5 sen,” the research firm said.
