The Daily Pulse of Bursa Malaysia

Press Metal saw heightened buying interest after posting good FY24 results

zaclim
Publish date: Tue, 04 Jun 2024, 08:49 AM
zaclim
0 131
Daily Pulse is a blog that provides daily stock updates and insights on the Bursa Malaysia.

Follow us in telegram for more daily discussion
https://t.me/xifuinvcommunity

Press Metal Aluminium Holdings Bhd is seeing heightened buying interest as the counter touched a new 52-week high and it is likely move upwards further. The counter may see near-term resistance level at RM6, followed by RM6.50.

It was too long ago the Press Metal was trading at its 52-week low of RM4.43 in March before it shoot up to RM6.50. Trading at the current price, the counter considered as relative ‘expensive with a price to earnings multiple of 38%. But given its strong fundamentals, investors may be excited to take a bet on Press Metal.

The company rose as much as 4.7% or 26 sen to RM5.85, its highest since May 2022. This is likely due to commendable first quarter results, which analysts' and consensus estimates. Mostly, analysts favour Press Metal for its favourable cost structure, as the bulk of its energy costs are secured through 15- to 25-year power purchase agreements with Sarawak Energy.

Additionally, it has a strong track record as an investible aluminium proxy in Malaysia, and a favourable environmental, social, and governance (ESG) profile, due to its hydro-powered smelters. Notably, Maybank IB upgraded the stock to buy from hold, and increased its target price by 26% to RM6.10, up from RM4.84.

Press Metal’s core net profit of RM417 million for the first quarter ended March 31, 2024 (1QFY2024) exceeded expectations, representing 28% of the research house's full-year estimate, and 26% of the consensus. “The next anticipated huge power supply will come from the Baleh Hydroelectric Project expected to complete in 4QFY2028.

We strongly opine that if Press Metal is able to secure power for another new smelting plant, this will be a major rerating catalyst for the group,” Maybank IB said. This is commendable for HLIB,which revised its TP higher 8%to RM6.51, from RM6 previously, for Press Metal. The counter looks too good to give it a miss.

More articles on The Daily Pulse of Bursa Malaysia
Multiple catalysts to spur Sunway share price

Created by zaclim | Jul 25, 2024

Sunway is hitting the right notes given its exposure to rising property sector and booming data centre-related deals. Investors are also awaiting the spinoff of its medical arm.

RCE Capital in the spotlight as it might surpass its previous high

Created by zaclim | Jul 24, 2024

RCECAP, non-bank financial institution, might see further upside on expectations of a hike in civil servants’ salaries. With a proposed bonus share issue, this might propel the counter even higher

Laser vision on Optimax as it looks appealing

Created by zaclim | Jul 22, 2024

Optimax Holdings Bhd has set its sights on an upturn in its result after a less than desirable year end This augurs well for the company and investors may want a piece of the boom

Tasco gains steady upward momentum despite poorer 4Q numbers

Created by zaclim | Jul 22, 2024

Total logistics solutions provider has been hit by freight rates that fell to pre-pandemic levels. Hopes are high that the company will recover and trend higher.

Teo Seng looks poised for further uptrend

Created by zaclim | Jul 19, 2024

Integrated layer farming company Teo Seng Capital Bhd is garnering much attention as it has almost doubled in terms of share price in the past year. Shold investors continue to hold on to it?

Super interest in Superlon with attractive entry point

Created by zaclim | Jul 18, 2024

Price rose to a 52-week high of RM1.45 as it posted more than 3-fold increase in its net profit 4QFY24. Now that the counter has trended lower, indicate a good time to consider investing in Superlon

Banking on a big gain from Unisem but not immediate

Created by zaclim | Jul 16, 2024

Unisem (M) Bhd is slowly but surely regaining its lustre. All things are moving towards better days for the manufacturer of semiconductor devices.

More upside for Tex Cycle as it goes on M&A sprint

Created by zaclim | Jul 15, 2024

Texcycle has been on the upcycle in terms of share price, touching a record high of RM1.49. It has lost some ground since its high but the counter is trending out recently.

ATA IMS sees bright light as it surges past 2-year high

Created by zaclim | Jul 15, 2024

Electronic manufacturing services provider ATA IMS Bhd has been trading higher in the last couple of weeks and looks to be able to sustain its upward momentum. Is it still time for investors to enter?

Kobay saw poorer 3QFY24 results but saw positive share price momentum

Created by zaclim | Jul 11, 2024

Kobay Technology Bhd is seeing upward traction again after trending lower since touching a year high of RM2.58. Can it surpass its recent high?

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment