28 AUGUST 2012Bernama.com
AmResearch Maintains "Buy" Call On Press Metal Bhd
Edited by : AL CIRCLE
1 min read
AmResearch Sdn Bhd has maintained its 'Buy' call on Press Metal Bhd with a lowered fair value of RM2.42, to account for a softer first half of 2012 for the global aluminium market as macro cycles remained fluid.
Against this backdrop, the research house said it expected Press Metal's upcoming second quarter 2012 results, scheduled for release this week, to be relatively weak.
"Benchmark aluminium prices fell nine per cent quarter-on-quarter to US$1,978 per tonne in the second quarter as buying sentiment turned cautious on account of weaker macro data points," it said in a statement.
Hence, AmResearch has trimmed Press Metal's forecast core net profits for the 2012-2014 financial years by seven to 14 per cent on more conservative pricing assumptions and some initial start-up cost for its new aluminium smelter at Samalaju.
However, it said the company's prospects should be lifted by additional capacity kickers moving into the second half of this year. With construction completed and pre-testing works ongoing, commercial operations are pencilled in for launch in the fourth quarter of 2012 financial year.
Against this backdrop, the research house said it expected Press Metal's upcoming second quarter 2012 results, scheduled for release this week, to be relatively weak.
"Benchmark aluminium prices fell nine per cent quarter-on-quarter to US$1,978 per tonne in the second quarter as buying sentiment turned cautious on account of weaker macro data points," it said in a statement.
Hence, AmResearch has trimmed Press Metal's forecast core net profits for the 2012-2014 financial years by seven to 14 per cent on more conservative pricing assumptions and some initial start-up cost for its new aluminium smelter at Samalaju.
However, it said the company's prospects should be lifted by additional capacity kickers moving into the second half of this year. With construction completed and pre-testing works ongoing, commercial operations are pencilled in for launch in the fourth quarter of 2012 financial year.
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