The Malaysian aluminium giant, Press Metal Aluminium Bhd, has demonstrated a remarkable financial performance in the first quarter of 2024, propelled by increased sales volumes and a favourable exchange rate. This impressive growth is propelled by a significant rise in both net profit and revenue, highlighting the company's strategic positioning and market adaptability in an evolving global landscape.
For the quarter ending March 31, 2024 (1Q 2024), Press Metal Aluminium reported a net profit of RM408.04 million, marking a substantial 44.7 per cent year-on-year increase from RM281.97 million in the corresponding period of the previous year. Concurrently, the company’s revenue surged by 17 per cent, reaching RM3.62 billion compared to RM3.07 billion in 1Q 2023. This financial upturn is attributed to heightened economic activities, particularly within the Asian markets, which have spurred a growing demand for aluminium.
Maintaining its commitment to shareholder returns, Press Metal declared a first interim dividend of 1.75 sen for the quarter under review, mirroring the payout from the same period last year.
The aluminium market has experienced a notable rally, with three-month aluminium futures on the London Metal Exchange gaining nearly 7 per cent this year. This rise is driven by robust demand coupled with supply chain concerns, reflecting the broader trends in base and precious metals.
Amidst the complexities of the US-China trade war, Press Metal seeks to navigate the resultant tariffs and restrictive policies to its advantage. The company aims to capitalise on these shifting trade dynamics, enhancing its strategic positioning in the global market.
Emphasising its commitment to sustainability, Press Metal's focus on low-carbon aluminium production aligns with the growing preference for environmentally friendly sources. This strategic emphasis positions the company favourably as buyers increasingly shift away from less sustainable alternatives.
Despite challenges in the construction and property sectors, investments in renewable energy and electric vehicles continue to drive global demand for aluminium. This trend denotes the material's critical role in advancing green technologies and sustainable infrastructure.
Reflecting investor confidence, Press Metal’s shares rose by 22 sen, or 4.10 per cent, to RM5.59, valuing the company at RM46.06 billion. Year-to-date, the stock has appreciated by 15 per cent, indicative of strong market performance and a positive future outlook.
If you wish to learn more about the aluminium industry as a whole, check out AL Circle's special report, Global Aluminium Industry Outlook 2024.
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