(PMAH MK/BUY/RM2.94/Target: RM3.50)

We emerged from our recent visit to Press Metal’s Samalaju plant feeling more positive over the company’s prospects. The commencement of additional capacity for value-added products and the conveyor belt system by end-17 should drive margin expansion from 2018 onwards. Potential catalysts include: a) further uptrend in aluminium prices; and b) expansion at its Samalaju plant given land availability. Maintain BUY and raise target price to RM3.50, based on 17x fully-diluted 2018F EPS.

Source: UOB Kay Hian Research - 9 Aug 2017