Press Metal profit jumps 51% as Middle East aluminium curtailments lift the premiums

Southeast Asia’s largest integrated aluminium producer extended its record earnings run as higher aluminium prices, regional premiums and Middle East supply disruptions supported performance.

Press Metal Aluminium Holdings Bhd has extended its record earnings streak into 2026, with the Southeast Asian aluminium producer posting a 51 per cent year-on-year increase in net profit to MYR 1.43 billion (USD 350.78 million) in 1HFY2026.

The company had already delivered back-to-back record profits in FY2024 and FY2025, supported by higher aluminium prices, increased sales volumes and a more favourable cost environment. Its latest performance comes as the global aluminium market remains tight, with RHB Research expecting a deficit of around 900,000 to one million tonnes in 2026.

Press Metal’s record earnings continue

Press Metal’s net profit rose to MYR 2.1 billion (USD 514.08 million) in FY2025, compared with MYR 1.77 billion (USD 433.08 million) in FY2024 and MYR 1.22 billion (USD 299.27 million) in FY2023. Its three-year net profit compound annual growth rate stood at 14.3 per cent.

Revenue also reached a record MYR 16.21 billion (USD 3.97 billion) in FY2025, up from MYR 14.91 billion (USD 3.65 billion) a year earlier.

The earnings momentum continued in the first half of FY2026. Revenue increased 8.7 per cent year on year to MYR 8.79 billion (USD 2.15 billion), from MYR 8.09 billion (USD 1.98 billion), while net profit jumped 51 per cent to MYR 1.43 billion (USD 353.50 million) from MYR 945.3 million (USD 230.80 million).

Press Metal attributed the latest improvement to production curtailments in the Middle East and higher regional premiums, alongside the favourable aluminium market.

The company also retained The Edge Billion Ringgit Club Awards’ recognition for the highest three-year return on equity in the super-big-cap category for a second consecutive year. Its ROE increased from 17.9 per cent in FY2023 to 22.9 per cent in FY2024 and 23.5 per cent in FY2025, resulting in an adjusted weighted three-year ROE of 22.2 per cent.

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Aluminium deficit supports price outlook

The supply-demand balance remains a key factor behind Press Metal’s earnings outlook.

RHB Research expects the aluminium market to remain in deficit during 2026, estimating a shortfall of 900,000 to one million tonnes. The research firm, citing Press Metal management, said the restart of Middle Eastern capacity could take six to 12 months.

Persistent shipping disruptions through the Strait of Hormuz and renewed regional conflict could delay the recovery of Middle Eastern supply further, according to RHB.

The research house maintained its aluminium price assumptions at US$3,250 per tonne for 2026, before easing to US$3,050 per tonne in 2027.

RHB continues to rate Press Metal as its top pick, citing elevated aluminium prices supported by the structural supply deficit and the company’s valuation.

Indonesian alumina refinery offers longer-term catalyst

Press Metal is also moving towards greater alumina self-sufficiency through its 80 per cent-owned Indonesian subsidiary, PT Kalimantan Alumina Nusantara.

The subsidiary’s alumina refinery is expected to begin commissioning in 2027. Its eventual expansion could bring Press Metal closer to alumina self-sufficiency and further support its smelting margins, according to RHB Research.

Press Metal had 1.08 million tonnes per annum of aluminium smelting capacity and 230,000 tonnes per annum of extrusion capacity at the end of 2025, giving it the largest aluminium capacity in the region.

The strong aluminium market has also lifted the company’s share price. As of March 31, 2026, its shares stood at MYR 8 (USD 1.96), compared with MYR 4.65 (USD 1.14) three years earlier, representing a three-year shareholder returns CAGR of 19.8 per cent.

The stock subsequently reached a record MYR 9.23 (USD 2.26) on June 3 before easing to MYR 8 (USD 1.96) on August 28.

According to Bloomberg data, 10 research houses had a “buy” recommendation on Press Metal, while five rated the stock “hold”. Their target prices ranged from MYR 8.22 (USD 2.01) to MYR 10.67 (USD 2.61), with an average of MYR 9.41 (USD 2.30).

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