KUALA LUMPUR (Nov 28): Press Metal Aluminium Holdings Bhd's net profit dipped 3.1% to RM306.12 million for the third quarter ended Sept 30, 2023 (3QFY2023), from RM315.80 million in the corresponding quarter a year ago, as revenue was weighed by softening metal prices.

Revenue fell 10.6% to RM3.44 billion for 3QFY2023 from RM3.85 billion a year ago, its bourse filing showed. Earnings per share (EPS) slipped to 3.72 sen for 3QFY2023 from 3.82 sen in 3QFY2022.

The group declared an interim dividend of 1.75 sen per share, to be paid on Dec 29, with the ex-date set on Dec 15.

For the nine months ended Sept 30 (9MFY2023), the group's net profit fell by 22% to RM893.88 million from RM1.15 billion in the previous corresponding period, while revenue declined 13% to RM10.27 billion from RM11.77 billion. The cumulative period's EPS came to 10.85 sen, down from 14.01 sen previously.

Press Metal’s group chief executive officer Tan Sri Paul Koon said the market appears to be consolidating and the group is cautiously optimistic on increasing market activities moving forward.

“We anticipate the demand for aluminium to improve once interest rates embark on a reversal course and global economies recover, further catalysed by manufacturing relocation to this region,” he said in a statement on Tuesday.

“While there is a general slowdown in the real estate sector, we see growing prospects in infrastructure spending, solar manufacturing and the electric vehicle (EV) sectors, particularly from China. These sectors are expected to drive demand for aluminium, offsetting any declines from other industries.

“In tandem with the accelerating pace of decarbonisation-related investments globally, we will consider selective high-growth projects or opportunities which complement our existing businesses. We are confident of the prospects of the aluminium industry and we are committed to advancing our position to ensure long-term success and value for all stakeholders,” he added.

Press Metal shares closed two sen or 0.4% lower to RM4.85 on Tuesday, giving the group a market capitalisation of RM39.96 billion.