Koon Yew Yin's Blog
Alcom compared with Press Metal Aluminium - Koon Yew Yin
Koon Yew Yin
Publish date: Mon, 21 Feb 2022, 12:50 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Both Alcom Aluminium (2674) and Press Metal Aluminium (8869) are doing the same kind of business as you can read below.
Alcom’s last trade price is Rm 1.02. Its EPS for the latest quarter ending Sept was 5.12 sen and 5.86 sen for its previous quarter.
Press Metal’s last traded price is Rm 6.66. Its EPS for the latest quarter ending Sept was 3.51 sen and 3.16 sen for its previous quarter.
Why should Alcom be selling so much cheaper than Press Metal in terms of PE ratio?
I am obliged to inform you that I have been buying Alcom in the last few days and I am not asking you to buy to push up the share price to help me.
Alcom is Aluminium Co of Malaysia Bhd together with its subsidiaries are involved in the manufacture of aluminium sheets and foil products. The key business segments that the group operates are in fin stock, building products, heavy gauge foil, and specialties. The group supplies to manufacturers of air conditioner across Asia and Europe. Some of the other segments include building and construction, packaging, cables and various other industries. The company also produces other foil products such as cable foil for production of cable war, diaphragm foil and plain foil for packaging. Majority of the company's revenue comes from Malaysia and Thailand. Alcom share price chart below is showing up-trend.
Press Metal Aluminium Holdings Bhd manufactures and sells extruded aluminium and other aluminium products to customers worldwide. The company operates in two segments based on function. The smelting and extrusion segment, which generates the vast majority of revenue, purchases aluminium scrap and produces extruded aluminium and aluminium alloys to industrial customers. The trading segment markets aluminium products. Press Metal has two customers that each account for over 10% of the firm’s revenue. The majority of Press Metal’s revenue comes from Asia and Europe.
Press Metal share price chart as shown above is up-trend. Why should Press Metal’s share be selling at much higher price than Alcom when both companies are doing the same kind of business?
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Discussions
Be the first to like this. Showing 15 of 15 comments
Upstreamer has (usually) fatter 1st bite at the margin vs Downstreamer taking on more margin compression risk. how about aj/ht vs ays/leonfb/prestar?
2022-02-21 15:27
when Uncles says buy, the shares normally will lao sai. kasihan alcom as the next victim
2022-02-21 17:39
Why not compare proton with Mercedes since both also bring u to assume destiny u dickhead!
2022-02-21 18:16
Alcom is downstream. Press Metal is upstream. Demand for Press Metal output include Commodity trading houses.
2022-02-22 01:40
It is definitely not in the same value chain of aluminium business. Just because its about aluminium you group them together and compare
2022-02-22 12:49
I am obliged to inform you that I have been buying Alcom in the last few days and I am not asking you to buy to push up the share price to help me.....
That also MEANS...
I am telling you to BUY ALCOM because I am unloading. I am asking you not to push up the share price for me, but instead to buy what I am selling.
2022-02-22 13:57
hi all
PRESS METAL should not be compared to ALCOM--one is a producer of Alum ingots (the finished product of P.Metal becomes the inpur raw material ) while the other is user ( a sort converter into products which are supplied to other manufacturer to make end consumer products )
2022-02-24 10:23
Hello, pls correct me if I'm wrong. KYY said above that Press Metal is involved in the smelting of Aluminum, meaning extracting it from it's ores. Whereas ALCOM is only involved is the manufacturing of Aluminum products. So, ALCOM does not benefit from the increase in Alum prices, in fact they will suffer because Aluminum is an input material for ALCOM and they would have to buy it at a higher price. Only Press Metal will benefit from the increase in Aluminum prices. Am I right? Appreciate your comments, thank you.
2022-02-24 14:22
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okay, let's us look at another scenario.
Why is Public Bank selling higher than Affin Bank since they are doing the same kind of business? Both have banking license.
According to Investopedia, a blue chip stock is a huge company with an excellent reputation. These are typically large, well-established, and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors. A blue chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often than not a household name.
2022-02-21 14:29