PETALING JAYA: Integrated aluminium manufacturer Press Metal
Aluminium Holdings Bhd’s outlook is expected to improve further after reporting record high earnings for the third quarter ended Sept 30, 2025 (3Q25),
BIMB Securities said 3Q25 results came in beyond expectations and the market anticipates an even stronger 4Q25, driven by the full pass-through of lower alumina costs, firmer aluminium prices and higher associate contributions.
“Quarter-on-quarter margins continued to strengthen as alumina prices stayed subdued at US$358 per tonne while smelting operations operated at near-optimal 98% utilisation.
“The full benefit of lower alumina prices has yet to be realised due to the typical one to two months inventory lag, indicating further margin upside in 4Q25,” it noted.
The brokerage has maintained a “buy” call on the stock with a revised higher target price (TP) of RM7.20 from RM6.21.
Maybank Investment Bank Research (Maybank IB), which has revised its financial year ending Dec 31, 2025 (FY25) to FY27 earnings forecast by 14%, 8% and 10% on higher aluminium and lower alumina price assumptions, has also revised the TP to RM7.41.
It added the aluminium prices should remain supported by tight supply, though demand may stay volatile amid global macroeconomic uncertainty.
“Slower global supply growth, tight scrap availability, rising energy costs and structural demand from clean energy, artificial intelligence and data-centre expansion continue to underpin a positive medium to long-term aluminium outlook.”
Hong Leong Investment Bank (HLIB) Research reckoned alumina prices would remain stable, underpinned by China’s restrained supply growth and rising demand from clean energy applications.
“Overall, we like Press Metal due to its favourable cost structure as the bulk of its energy costs are locked in via 15 to 25 years in power purchase agreements, a solid track record as an investible aluminium proxy in Malaysia and a favourable environmental, social and governance profile as its smelters are hydro-powered,” it said.
HLIB Research has maintained a “buy” call with a higher TP of RM7.11 from RM6.60.
Meanwhile, RHB Investment Bank Bhd also weighed in, stating it expects a quarter-on-quarter earnings uptick for Press Metal.
“Global production remains subdued as China nears its 45 million tonne production cap,” it noted.
It said Press Metal expects alumina realised prices to be US$20 to US$30 lower quarter-on-quarter, implying a cost ratio of about 14%.
It has also maintained a “buy” call on the stock with a TP of RM7.30.