Press metal has bright prospects as earnings continues to improve

According to RHB Research Institute Sdn Bhd, Press Metal Bhd has impressive prospects as earnings are expected to rise with improved aluminium prices, higher turnover and lower effective tax rate.

The Press Metal earning projection for FY15 is calculated by RHB Research to be higher by 11.3%. The positive prediction is reinforced by the company’s recent proposal of a bonus issue aimed at improving the liquidity of the company’s shares price.

AmResearch Sdn Bhd (AmResearch) has given another picture of the company, saying that the company’s early conversion of 95.7 million of redeemable convertible secured loan stocks will earn them interest savings of RM 12.6 million while the enlarged share base will reduce the company’s net gearing.

They have also calculated that the Press Metal may experience a rise in the shareholder’s stakes from 40.6 to 49.44% in a best case scenario. AmResearch also predicts a rise in Press Metal’s share base from 549 million to 1.289 billion after the issue of the company’s one-for-one bonus. Press Metal has released the Q3 2014 financial results where they have posted a profit of RM82.65 million jumping up from loss of RM 1.65 million in Q3 2013. The turnover for this period has also improved with a 29 percent increase in revenue YOY to RM1.03 billion while the sales have risen 26 percent to RM 2.93 billion.