Last time FPI big drop , many people also said its QR no good but FPI delivered good QR. Tguan only need 6 million PAT more to achieve annually new high earning. Haha. New two factories capacity will be added this Q. Third new plant is under construction. Haha. .
- As noted, the group has already been complying with the RBA's guidelines and maintaining best practices in aligning to this world's largest industry coalition dedicated to corporate social responsibility in global supply chains.
- More importantly, management noted that they are open for discussion with any parties (that are truthful and sincere for ESG betterment) and will upheld best practices and improve for any vulnerabilities, after learning from the series of incidents happened in Malaysia.
Based on customers’ orders and forecast, we can say that the group’s 2021 revenue is ready to grow over 20%. “Our plastic packaging materials capacity in 2021 will hit about 180,000 tonnes from 150,000 tonnes in 2020,” he said. Ang said the group’s premium packaging products of stretch films, courier bags, and food packaging contributed to this year’s growth.
Japanese customers increased their orders after the Olympics as they were worried about a possible disruption in China’s supply chain, triggered by the shortage of containers and vessels and energy crisis. “Most pre-orders were from us, as they fear that supplies from China may not reach them,” he said. Ang said the group also expects the contribution from Europe, the United States and Australia will hit 30% this year. According to Ang, the group allocated over RM200mil to establish three plants in Sungai Petani in early 2021 to produce premium plastic packaging products. “The stretch film plant has been completed, and it is now in operation. “The courier bag plant will be completed in next month. The third plant will operate in March 2022,” he said. In 2022, the group will allocate RM50mil for two more stretch film plants.
@kimpau We no need to shout up up up. Just don’t spread the negative energy will do. Share price drop or rise is up to the market to decide. Won’t panic easily if Do enough homework and understand the FA of the company
I found that every thread has some nay sayers who keep spreading negative energy and asking people selling. What is their purpose ? If so negative, should not invest in stock market. Just sit at home and watch K drama.
China's energy crunch spells margin erosion for Press Metal, but Affin Hwang still likes the stock By Farah Adilla - October 20, 2021 @ 10:22am
KUALA LUMPUR: China's energy problem, which is expected to remain until 2022, should translate to some profit margin erosion in Press Metal Aluminium Holdings Bhd's earnings, Affin Hwang Capital said.
In a note today, the firm said raw material supply including alumina, carbon anode, magnesium and silicon metal were expected to be under pressure in the coming quarters as China struggled with its electricity shortages, causing disruptions in production.
It said cement, steel and aluminium production being the most energy-intensive industries were expected to be worst hit from the power crunch.
"Nevertheless, we believe the rise in raw material prices will be partially passed through to customers, mitigating the impact, while the resulting global supply shortage would translate to elevated aluminium prices for a longer period of time.
"Despite the potential squeeze in margin, we continue to like Press Metal for its strong earnings growth outlook and scarcity premium as it is the only aluminium smelter to be listed in Malaysia and the largest aluminium smelter in Southeast Asia," it said.
Affin Hwang said Press Metal's Samalaju Phase 3 plant was operating at 96 per cent capacity and on track for full ramp-up by the end of the year.
Upon full commissioning, Samalaju Phase 3 plant's total capacity will expand to 1.08 million tonnes per year, up 42 per cent from the current 760,000 tonnes per year.
Affin Hwang has adjusted Press Metal's 2021-2023 ernings by 9.5 per cent, -5.9 per cent and -4.3 per cent respectively.
This was after incorporating higher aluminium prices as a result of the global aluminium shortage, higher raw material costs and lower value added products sales volume mix as a result of potential disruption in magnesium and silicon metal supply.
Affin Hwang has maintained its "Buy" call on Press Metal with a lower target price of RM8.20 from RM8.70 previously.
RHB has maintained a “BUY” recommendation on Press Metal Bhd at a trading price of RM8.50, 53% upside and 1% yield.
RHB said that Budget 2022’s introduction of a one-off windfall tax is unlikely to have a pertinent impact on Press Metal going into 2022, given the ongoing Pioneer Status tax holiday for its primary smelting hub in Samalaju (960ktpa).
It said that its estimates are therefore maintained, with our back-of-the-envelope calculations indicating an FY22F EPS impact of <2%. All in, we believe that the windfall tax impact may, at most, translate into a 2% impact to PMAH’s FY22F EPS,” it said.
RHB said that as such, it makes no changes to its earnings estimates and SOP-derived TP of MYR8.50 – the latter having accounted for a 6% ESG premium mainly reflecting the group’s environmental and governance credentials.
On the key downside risks include a sharp deterioration in global economic conditions, unfavourable commodity price movements, and setbacks in commissioning its Phase 3 Samalaju smelter and Bintan alumina refinery.
Thong Guan raw material cost is not correlated with oil price. Tguan raw material is LLDPE which is derived from naphtha. Please do readings. Tguan bought quite many raw materials from LC TITAN. LC ASP is low based on QR that’s why boost the Tguan share price on Friday.
Everyday keep dropping is really lower down my confidence. I bet quite a big portion of fund into Topglov after seeing its recent QR performance. Recently really a lot of bad news about gloves counters.