PETALING JAYA: Analysts are holding off on revising their outlook for Malaysia Smelting Corp
Bhd (MSC), pending clearer guidance on the group’s RM10mil rotary furnace investment at the Rahman Hydraulic Tin (RHT) mine in Klian Intan, Perak.
Most expect the financial impact to materialise in financial year 2027 (FY27), with commissioning slated for late FY26.
Apex Securities said it would seek updates on expected cost savings, utilisation rates and operational efficiencies before adjusting its forecasts. While the rotary furnace should streamline upstream processing and cut logistics costs, the near‑term earnings contribution is likely to be modest given its relatively small planned capacity of around 10 tonnes per day.
The new facility will allow MSC to convert tin ore into crude tin metal directly at the mine site before downstream refining at Pulau Indah – a strategic step towards deeper upstream integration at Malaysia’s largest open‑cast tin mine.
Currently, all ore from RHT is transported 400km to Pulau Indah for smelting.
Apex Securities noted that the furnace’s capacity remains small relative to MSC’s existing annual smelting capacity of about 40,000 tonnes, suggesting the investment is primarily a cost‑optimisation and margin‑enhancement initiative rather than a volume driver.
The research house maintained its “buy” call and RM2.37 target price, based on 13 times FY26 earnings.
It said the investment complements MSC’s improving mining efficiency, structural cost savings from the closure of its Butterworth smelter, and the group’s position as the world’s largest independent tin smelter – a beneficiary of structurally tight global tin supply.
MSC, one of the world’s oldest tin groups, traces its roots back to the Rahman Hydraulic Tin mine, with the company later incorporated and listed on Bursa Malaysia in 1995 as part of a restructuring of Malaysia’s tin‑smelting and mining assets.
Today, MSC remains the world’s largest independent tin smelter and a key upstream–downstream player in the global tin supply chain.
