PETALING JAYA: Press Metal
Aluminium Holdings Bhd’s recent proposed acquisition of a controlling stake in PMB Technology Bhd will enable Press Metal to leverage on a sustainable energy supply to further expand its downstream business, say analysts.
Press Metal has proposed to acquire an additional 35.6% stake in PMB Technology for RM465mil cash, or 70 sen per share, increasing its shareholding from 23.2% to 58.8%. Upon completion slated by the third quarter of financial year 2026, PMB Technology will become a subsidiary of Press Metal.
In a note to clients, MBSB Research said the acquisition forms part of Press Metal’s strategy to reposition PMB Technology away from its loss-making and structurally hampered silicon metal business.
Despite execution risks, it viewed the acquisition positively as it secures additional renewable power capacity, a key constraint to future smelting expansion, while strengthening the group’s downstream value chain.
The initiative also aligns with Press Metal’s strategy to expand the contribution from higher-margin value-added products (VAPs), which accounted for 47% of its financial year 2025 (FY25) sales volume and is targeted to exceed 50% over time.
MBSB Research maintained a “buy” call on Press Metal with a revised target price of RM9.66.
“We continue to favour Press Metal for its industry-leading low-cost renewable- powered smelting operations, expanding upstream integration and growing contribution from higher-margin VAPs.”
It believes the group’s earnings visibility will strengthen further as its PT Kalimantan Alumina Nusantara joint venture commences operations in 2027, supplying up to 40% of the group’s alumina requirements while reducing raw material cost volatility.
Together with China’s 45.5-million-tonne smelting capacity cap, structurally low global inventories and long-term demand from electrification, renewable energy and grid investments, MBSB Research also believes that Press Metal remains well positioned to deliver sustainable earnings growth over the medium term.
