Can PMETAL 8869 PRESS METAL ALUMINIUM HOLDINGS BERHAD continue pressing forward on the back the positive outlook of the aluminium sector?
It is pretty amazing that Press Metal Aluminium Holdings Bhd was trading at iits one year peak of RM6.67.
At 4.79 currently, it seemed like a monumental task to reach its 52-week high. But the high dissipated when it fell to a low of RM3.90 last month.
Is this a good time to accumulate the stock now it has climbed and trading at a PE ratio of about 28x?
Press Metal is largest integrated aluminum producer in Southeast Asia and one of the world-class low cost smelters.
It recently secured export sale of aluminium ingots worth RM110 million from Hong Kong’s Daching Enterprises Ltd, and the companies have also sealed a five-year export deal of the same product for RM670 million.
The deal was inked during a meeting recently held in conjunction with Malaysia’s trade and investment mission to China
This should be a good impetus for the company to growth further having bagged a long term export deal.
Apart from the contact, demand of aluminium is likely to be good due to increase in the demand of electric vehicles and renewable energy.
According to Press Metal, the RE sector is set to become a growth engine for aluminium because of solar photovoltaic and wire rod demand from infrastructure spending on transmission lines.
The transportation and construction sectors were the key demand drivers for aluminium in 2022, making up close to 50% of the demand.
The electrical, packaging and foil stock industries were the other prominent sectors for aluminium demand.
The aluminium producer reckons the supply constraints from the West will continue to persist while stronger-than-expected recovery led by China will push the demand for aluminium higher.
What is also helping the company is the dissipating recession fears and high inflation with global freight costs declining more than 30% and easing of high prebake carbon price.
Kenanga Research likes Press Metal as a strong beneficiary in the aluminium sector.
The research housel is overweight on the sector with aluminium prices being well supported by demand recovery underpinned by the normalisation of economic activities.
Since China’s reopening in early January, commodity prices have rebounded strongly after a lacklustre 2HCY22, driven by expectations of a demand recovery in its property market.
ASPs are unlikely to retrace back to pre-COVID-19 levels in the near term as the demand recovery is largely due to normalisation of economic activities.
YTD, LME aluminium price average at USD2,436/MT is 4% higher than 2HCY22’s USD2,345/MT.
Press Metal looks good to trend higher given the positive stance in the aluminium industry and it appears to be a fair buy at current levels.
https://xifu.my/OpinionsComment.aspx?BID=B03312536P1AEAE0
Singapore Investment
-
-
-
-
-
-
-
-
-
-
-
Hidden Traps (and Benefits) of Instalment Plans18 hours ago
-
Best Areas in Phnom Penh to Buy Property19 hours ago
-
Grab expands menu with Chope acquisition19 hours ago
-
-
-
HDB vs Private Property: Pros & Cons22 hours ago
-
Orchids of Angkor Wat22 hours ago
-
-
-
-
Few Reflections1 day ago
-
Die With Zero (Bill Perkins)1 day ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Weekly Market Outlook5 days ago
-
-
-
Top 5 Dividend Stocks on SGX5 days ago
-
Be anti-fragile5 days ago
-
-
-
-
-
-
-
-
-
-
-
-
随心笔:忧郁1 week ago
-
-
-
Quick Updates (July and August)1 week ago
-
Finance Investment Movement 471 week ago
-
-
-
-
-
SG GEMS 2024 by AlphaInvest2 weeks ago
-
-
Lentor Hills Residences2 weeks ago
-
MIT vs MLT. Which To Choose?2 weeks ago
-
-
-
-
Monthly IBKR Update – June 20242 weeks ago
-
-
-
At the Half Year Mark3 weeks ago
-
-
-
-
-
-
Portfolio Summary for June 20243 weeks ago
-
-
-
-
-
Jun 2024 Portfolio3 weeks ago
-
Gone Fishing3 weeks ago
-
2Q 2024 Investment Strategy Update3 weeks ago
-
A Giant Sucking Sound…4 weeks ago
-
-
Portfolio (June 30, 2024)4 weeks ago
-
-
Oh My Spins Casino Login App4 weeks ago
-
-
-
-
-
-
-
-
Free money again! Don't say #bojio.1 month ago
-
-
-
-
-
-
-
Breakthroughs in portfolio :)2 months ago
-
Bond Coupons vs Rental Income2 months ago
-
-
-
Resilience and Adaptability = Confidence2 months ago
-
-
-
China’s going downhill?2 months ago
-
-
iFAST 1Q24: Firing on all cylinders2 months ago
-
-
2024 (Portfolio Update)3 months ago
-
-
Feb 2024 Expenditure4 months ago
-
New Bitcoin All Time High Before Halving4 months ago
-
-
-
The Market Is A Scam!4 months ago
-
-
-
-
Options Trading Journal Jan 20245 months ago
-
-
-
-
-
Year 2023 DIYQuant Portfolio Performance Report6 months ago
-
Monthly Summary of November 20237 months ago
-
Migration of website8 months ago
-
-
-
-
-
-
-
-
-
-
-
-
A New Light1 year ago
-
-
-
-
-
-
-
2022 Thoughts, Hello 2023!1 year ago
-
Series of Defaults for Maple Finance1 year ago
-
Takeaways from “Sea Change”1 year ago
-
Greed is Coming Back1 year ago
-
-
-
-
-
-
-
-
-
-
-
What is Overemployment2 years ago
-
Terra Hill Condo (former Flynn Park)2 years ago
-
Alibaba VS Tencent: The Battle Royale2 years ago
-
-
-
-
-
-
-
-
-
Home
PMETAL
xifu
Can PMETAL 8869 PRESS METAL ALUMINIUM HOLDINGS BERHAD continue pressing forward on the back the positive outlook of the aluminium sector?