Press Metal Aluminium Holdings Bhd, an aluminium-producing firm, is set for steady earnings in the second half of 2025. The growth will be supported by firmer aluminium prices, effective hedging and easing input costs. Hong Leong Investment Bank Bhd (HLIB Research) said margins will improve with lower carbon anode prices. These prices fell five per cent quarter-on-quarter. The aluminium–alumina cost ratio is also expected to stay stable at 13–14 per cent.
HLIB Research noted, “While alumina prices edged up modestly to USD 362 per tonne in the third quarter (Q3), from USD 354 per tonne in Q2, prices have generally softened through mid-2025 as new refining capacity in China and Indonesia shifted the market into surplus.” The firm expects alumina to remain range-bound at USD 330–USD 370 per tonne, with oversupply capping upside unless disrupted by supply shocks.
Expansion projects support long-term strength
Press Metal is advancing its Nan Shan Aluminium expansion, due by the first half of 2026, and progressing Phase 1 of its PT KAN alumina refinery in Indonesia, targeted for FY27. Once completed, these projects could meet 45–55 per cent of its annual alumina needs, strengthening resilience against Indonesia’s bauxite export ban. HLIB maintained a higher target price of RM 6.60, while RHB set a slightly lower target of RM 6.26, reflecting cautious optimism amid currency and pricing risks.
Q2 2025 performance lifts outlook
On 21 August, RHB Investment Bank Bhd (RHB Research) projected that Press Metal’s net profit for Q2 2025 would rise on lower alumina prices, with core earnings seen at RM 480–520 million (USD 114.24–USD 123.76 million). In the first quarter of 2025, the revenue reached RM 3,897,248 (USD 43,886.2), while in the second quarter of 2024, it was RM 3,954,884 (USD 940,362.39). The improvement was driven by alumina prices falling to USD 350 per tonne, which reduced the alumina-to-aluminium cost ratio to 14 per cent, versus the three-year average of 18 per cent.
However, RHB cautioned, “This may be offset by the lower Q2 2025 London Metal Exchange (LME) price of USD 2,446 per tonne and the Main Japanese Port premium of USD 127 per tonne.” It added that a stronger ringgit could trim earnings by five per cent if not hedged. Despite this, RHB reaffirmed its “Buy” call with a revised target price of RM 6.26 (USD 1.49).
China remains pivotal, consuming nearly 60 per cent of global aluminium. A temporary pause in US tariffs on Chinese aluminium is expected to ease trade tensions and stabilise LME prices through late 2025. With both banks forecasting steady performance, Press Metal looks well-positioned to ride the aluminium recovery cycle.
Also read: Press Metal’s H1 revenue climbs 7% to $1.78B; PATAMI edges up by 3%
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