
_0_0.jpg)
Stock image for referential purposes only
Press Metal Aluminium Holdings Bhd is expected to strengthen its earnings in the coming years, with MBSB Research forecasting an improvement in net profit margins from 15.3 per cent in FY2026 to 16.6 per cent by FY2028.
{alcircleadd}The research firm has initiated coverage on the company with a "buy" recommendation and a target price of RM9.78 (USD 2.40) per share, citing Press Metal's renewable-powered aluminium smelting operations, expanding upstream integration and exposure to long-term electrification trends.
According to MBSB Research, Press Metal's competitive position is supported by its access to long-term hydropower at its Samalaju Industrial Park smelters in Sarawak, helping the company maintain stable production costs while producing lower-carbon aluminium. Electricity typically accounts for 28 to 30 per cent of global aluminium production costs.
Explore: The most comprehensive and forward-looking industry-focused report – Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook
The research house also highlighted the company's upstream expansion through investments in alumina refining and carbon anode production, including stakes in Nanshan Aluminium International Holdings and PT Kalimantan Alumina Nusantara.
Among these projects, PT Kalimantan Alumina Nusantara is expected to become a key medium-term growth driver. Its first phase is scheduled to begin operations in 2027, with annual alumina production capacity of one million tonnes. The refinery is expected to supply around 40 per cent of Press Metal's alumina requirements, improving raw material security and reducing exposure to fluctuations in alumina prices.
MBSB Research also expects improving aluminium market fundamentals to support the company's long-term growth, pointing to China's 45.5 million-tonne aluminium smelting capacity cap, historically low global inventories and rising demand from electric vehicles, renewable energy infrastructure and power grid expansion.
Explore our e-magazine ALuminium LeaderSpeak 2026 for the latest industry insights and trends.
Responses







