Press Metal Aluminium Holdings Berhad, or Press Metal for short, is a leading aluminium producer in Malaysia. Starting as a local aluminium extrusion company in 1986, the company has grown from a single-plant operation into a major industry player with a significant presence in Southeast Asia.
Press Metal's core business is the production of primary aluminium ingots, extruded aluminium products, and other aluminium-related items. These contribute to various sectors like construction, transportation, and consumer goods.
The company boasts a strong domestic presence and a growing international footprint, expanding its operations to the UK, Europe, Australia, and New Zealand in 1999 and then China in 2005. Press Metal is committed to sustainable practices, with its website stating its vision is “to provide products and solutions for a sustainable future.”
Press Metal's shares are listed on the Bursa Malaysia Securities Berhad under the ticker PMETAL.
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Press Metal EPS and Revenue Breakdown 2020-2023
| Source: TradingView | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | MYR 0.06 | MYR 7.54 billion |
| 2021 | MYR 0.13 | MYR 10.99 billion |
| 2022 | MYR 0.17 | MYR 15.69 billion |
| 2023 | MYR 0.15 | MYR 13.80 billion |
Comparison
Press Metal Share Price, Chart & Dividend Yield
After a substantial rise between March 2020 and March 2022, the Press Metal share price dipped and moved somewhat sideways until April 2024 before breaking higher, suggesting the current momentum is to the upside.
Dividend Yield: 1.26%
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Press Metal Share Price Forecast
Data compiled by i3 Investors shows that out of 22 investment analysts covering Press Metal shares, 15 five have a Buy rating on the stock, with seven assigning it a Hold rating. Here is the bull case and a hold case for the stock:
The Bull Argument: Analysts at RHB-OSK told investors in a July 2024 note that they have upgraded PMETAL to Buy from neutral. The firm now believes the “narrowing surplus and increasing demand for aluminium will further drive up LME aluminium ASPs.” Furthermore, they expect strong growth momentum to continue into the second quarter, driven by higher ASPs. “We are optimistic about the aluminium market, driven by increasing demand from the EV and solar sectors, recovery of global trade activities, and increasing awareness towards lower-carbon footprints smelters,” concluded the firm.
The Neutral Argument: In February 2024, Kenanga analysts maintained a Hold rating on the stock following PMETAL's FY23 results, which they said met expectations. “We acknowledged that contrary to expectations, China’s reopening has not significantly boosted the demand for aluminium,” the firm said at the time. While the firm acknowledged that it liked PMETAL for several reasons, it stated that “the upside to its earnings is capped by subdued aluminium prices against a backdrop of a weak global economy.”
Average Analyst Consensus 12-Month Price Target: MYR 5.66
Who Should Buy Press Metal Shares
Press Metal Aluminium Holdings offers an attractive proposition for various investor profiles, but careful consideration of your investment goals and the company's position is key. Here are some investor types who might find Press Metal shares appealing:
Exposure to the Aluminium Industry: Investors seeking exposure to the growing aluminium industry, particularly in Southeast Asia, could find Press Metal a compelling option. The company's strong regional presence and focus on aluminium production position them well to benefit from rising aluminium demand.
Long-term investors: Investors with a long-term perspective who believe in the future demand of aluminium in industries such as construction, transportation, and consumer goods could find Press Metal an attractive investment opportunity.
Income-Seeking Investors: Press Metal has a dividend payout history and a strong track record of profitability. This might appeal to income-oriented investors seeking companies with the potential for future dividend distributions.
Value Investors: For investors seeking value, Press Metal's strong domestic market share, efficient operations, and established presence could be appealing. These factors contribute to the company's potential for long-term value creation.
