$PMETAL / 8869 (PRESS METAL ALUMINIUM HOLDINGS BERHAD)
Research by RHB
BUY – TP RMR6.67

“Positive Momentum to Continue; Upgrade To BUY”

We believe the narrowing surplus and increasing demand for aluminium will further drive up LME aluminium Asps. Consequently, we expect strong growth momentum to continue into 2Q24, driven by higher ASPs. Our DCF-derived TP implies 27.5x2025F P/E vs the 5-year mean of 25.5x – predicated by increasing awareness towards lower carbon footprints smelters and the gradual recovery in global demand. This report marks the transfer of Press Metal coverage to Cindy Lee.

Analyst:
Cindy Lee
cindy.chin.hui@rhbgroup.com