(PMAH MK/HOLD/RM3.29/Target: RM3.50)

Press Metal’s 2Q17 results were within expectations. 2Q17 net profit grew 36.4% yoy, in tandem with the 31.1% yoy increase in sales, driven by higher sales tonnage and aluminium prices. Given the recent run-up in share price, we downgrade the stock to HOLD with an unchanged target price of RM3.50. Key rerating catalysts include: a) a further uptrend in aluminium prices which could provide further upside to forecasted 2018- 19 earnings, and b) expansion at its Samalaju plant.

Source: UOB Kay Hian Research - 17 Aug 2017