[%UtTQ%] 
Research by Kenanga
OUTPERFORM – TP RM5.80

" Venturing 3rd Alumina Refinery”

PMETAL is investing RM1.04b for an 80% stake in a JV project for an alumina refinery in West Kalimantan, Indonesia. We are positive on this venture as the investment aims to secure alumina supply, with two other investments in alumina refinery, ensuring 75% of its alumina requirement is locked in. Given its balance sheet and cashflow generating ability, PMETAL can finance this without taking on debt. However, it has to equity account for this investment. We maintain our estimates, TP of RM5.80 and OUTPERFORM call.

Analyst:  
Teh Kian Yeong
[%HlZl%]

$KLSE-PMETAL 
Research by Kenanga
OUTPERFORM – TP RM5.80

" Venturing 3rd Alumina Refinery”

PMETAL is investing RM1.04b for an 80% stake in a JV project for an alumina refinery in West Kalimantan, Indonesia. We are positive on this venture as the investment aims to secure alumina supply, with two other investments in alumina refinery, ensuring 75% of its alumina requirement is locked in. Given its balance sheet and cashflow generating ability, PMETAL can finance this without taking on debt. However, it has to equity account for this investment. We maintain our estimates, TP of RM5.80 and OUTPERFORM call.

Analyst:  
Teh Kian Yeong
tehky@kenanga.com.my

$PMETAL / 8869 (PRESS METAL ALUMINIUM HOLDINGS BERHAD)