Press Metal Aluminium Holdings Bhd continues to benefit from supply constraints, easing input costs, and its low-carbon edge. Maybank Investment Bank (Maybank IB) Research has reaffirmed its “buy” rating on the company, lifting its target price (TP) by 12 per cent to RM6.34 per share from RM5.64, valuing it at 25 times earnings for the financial year ending Dec 31, 2026 (FY26).
Operational performance & market overview
Maybank IB Research noted that plant utilisation rose to 96–97 per cent in the second quarter of 2025 (2Q25), following the full restoration of operations at Samalaju in March 2025 after the September 2024 fire incident. While geopolitical risks could temper demand, the research house highlighted that slower supply growth of 1–1.5 per cent in 2025, compared to 3.2 per cent in 2024, is likely to support aluminium prices.
“We remain positive on Press Metal’s outlook, underpinned by tight aluminium supply and its low-carbon advantage from hydropower,” Maybank IB Research noted.
Also Read: Easing alumina price & tariff delay to boost Press Metal’s Q2 earnings: RHB estimates
It also pointed out that Press Metal has secured hedges for about 60 per cent of its FY25 sales at USD 2,600 per tonne, 45 per cent of FY26 at USD 2,650, 35 per cent of FY27 at USD 2,700, and 20 per cent of FY28 at USD 2,750.
Possible risks as per Maybank IB Research
However, it cautioned that elevated inventory costs, global uncertainties, and weaker contributions from associates could weigh on earnings. The research house noted that the US-China tariff delay announced on Aug 12 is expected to lend support to LME prices, further aided by China’s 15 per cent increase in aluminium imports during the first seven months of 2025, driven by strong electric vehicle demand, vehicles that use 20–25 per cent more aluminium than their internal combustion counterparts.
It added that alumina prices have fallen to US$370 per tonne from US$650 in January, bringing the alumina-to-aluminium ratio down to 14 per cent from a peak of 25 per cent earlier this year. RHB pointed out that Press Metal is trading at “an attractive valuation” of 22 times FY26 forward earnings, compared to its five-year average of 24 times.
“Moving forward, management expects alumina prices to remain soft, supported by higher bauxite exports to China (up 36 per cent year-on-year in 1H25) and the start-up new refinery capacity including Press Metal’s third one-million-tonne line, which commenced operations in July,” added.
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