[%RRsF%]
Research by HLIB
Buy – TP RM6.51

“To ride on stronger aluminium price"

We anticipate PMETAL’s 2Q24 core earnings to come in at the range of RM480-500m (+15% to 20% QoQ, +53% to 60% YoY), bringing 1HFY24 sum to RM897-917m (+48% to 51% YoY) – representing for 48-49% of our FY24 forecasts. Average LME aluminium price rose 15% QoQ to USD2,523/MT but alumina price continued its uptrend in 2Q24 (+14% QoQ) due to tightening supply induced by Alcoa’s suspension of 2.2m ton at its Kwinana site and Rio Tinto’s force majeure declaration on its alumina supplies. We view the imminent listing of PT Bintan positively as it paves way for capacity expansion from its current alumina output of 2mtpa. We maintain our forecasts and BUY call on PMETAL with TP of RM6.51, based on a PE multiple of 28x on FY25f profits.

Analyst:
Brian Chin
[%KoTy%]

$KLSE-PMETAL
Research by HLIB
Buy – TP RM6.51

“To ride on stronger aluminium price"

We anticipate PMETAL’s 2Q24 core earnings to come in at the range of RM480-500m (+15% to 20% QoQ, +53% to 60% YoY), bringing 1HFY24 sum to RM897-917m (+48% to 51% YoY) – representing for 48-49% of our FY24 forecasts. Average LME aluminium price rose 15% QoQ to USD2,523/MT but alumina price continued its uptrend in 2Q24 (+14% QoQ) due to tightening supply induced by Alcoa’s suspension of 2.2m ton at its Kwinana site and Rio Tinto’s force majeure declaration on its alumina supplies. We view the imminent listing of PT Bintan positively as it paves way for capacity expansion from its current alumina output of 2mtpa. We maintain our forecasts and BUY call on PMETAL with TP of RM6.51, based on a PE multiple of 28x on FY25f profits.

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my

$PMETAL / 8869 (PRESS METAL ALUMINIUM HOLDINGS BERHAD)