Aluminium price is still at early stage of bull run.. USD2100, The all time high prices USD 3400.. The industry shortage caused by Smelters down-sizing and closed down unprofitable division will ensure the price moving higher towards USD3400. The new demand from 1. Mammooth Industry - 1.1 Automotive Sector 1.2 Commercial Aircraft and 1.3 Electronic Gadgets ( All these will ensure strong demand to sustain the aluminium prices ! )
Average aluminium price seem to hit at USD 2,370 first high in this September-October 2014 !
RHB INVESTMENT BANK 所预测的事@Pmetal 现在已开始浮上水面上了.
接下来这 1 - 2 星期 股价会更加受追棒 !
Correction Price 将会导致和吸引更多INVESTORS 参与@Press Metal .
2. PE Based on yesterday closing is 13,36 times If based on RHB projected earning of RM364mil (Based on Aluminium Price of USD2400), The PE for 2015 is 9.8 Times
* The current price should be USD 2100 + 400 = USD 2500. By January 2015, The LME Spot Rate should hit USD 2200 + 500 = USD2700
So RHB Report is VERY CONSERVATIVE and we foresee the upgrade of new higher Target Price before end of the year.
$$$$$ Every increament of USD100, will contribute additional RM144 Million Gross Profit, Before Minority Interest $$$$$ ( Based on Exchange rate 3.20 and Annual Capacity 440,000 MTonnes
3. As of Q2, 2014, NTA Per Share is RM3,29.
For 2015, I believe the profit should hit minimum RM500mil to 800 mil range Vs RM364 mil (RHB Projection)
Strongly Recommend to Buy Now.. As This is The Only Proxy of Aluminium Play In Malaysia
PMetal will Be The Superb Champion among all Bursa Malaysia Stocks from now onwards till 2016/2017
The Aluminium prices rally will boost the explosive earning potential of Press Metal Berhad. The net profit Quarter to Quarter is jumping from 3%, Q1'2014 (LME Spot Price USD1650) to 6% Q2' 2014 (LME Spot Price US$ 1850), with current LME Spot price of US$ 2050, we expect the net profit to rise further.. if 10% of Turnover will be RM100mil for Q3'2014..
We should see more aggressive buying action from now due to Aluminium Price Rally, Bonus Issue and Pre- Quarterly Result Announcement Rally in anticipation of Surprise Earning,
Swap your Portfolio now to PMetal Only, The Only SuperStar in Bursa Malaysia that will outperform many stocks for the next few years.
From RM6,10 ,, to RM10,, or Zomo source of TP RM15.00.. it is still buy call to accumulate further because you will never reach the sky until the aluminium spot price reach USD3400 and market supply in surplus condition. By then, we will discuss about sustainability..
Happy Trading and Ride with The New Corporate Giant in making
long term stock. currently 440000 tonne aluminium. in progress of another plant 330000 tonne on 2016. just buy and put for 3 years at least 200% price up.
except the quarter result and bonus issue, waiting for the announcement of PPA which rally to qiong for phase 3 to increase the aluminium to 770000 tonne in 2016. can imagine how the profit to achieve billion soon.
Highlights / Stock Picks of the Day - Press Metal Bhd (PMETAL) – Not Rated
Author: kiasutrader | Publish date: Fri, 29 Aug 10:25 PMETAL’s share price has been consolidating for the past few weeks. Yesterday, PMETAL jumped 28 sen (+4.5%) to settle at RM6.55 supported by increase in daily trading volume. Chart-wise, a bullish “Marubozu” candlestick has taken out the strong resistance level of RM6.30. Key indicators – MACD, RSI and Stochastics are also turning bullish, suggesting that the buying interest is building up. We reckon that there would be a continuation of the previous uptrend, thus the share price could rally to RM7.00 (R1) and possibly RM7.25 (R2) next.
Turbo88 PPA is Power Purchase Agreement with utilities provider which is SEB ( In Peninsular is TNB). Once the PPA is in place,, PMetal can start to build the new plant to expand production capacity by another 330,000 Metric Tonnes by 2016 as mentioned by WKeeing.
With total smelting capacity of 770,000 Metric Tonnes and existing extrusion capacity, the annual turnover can hit RM8 Billion or RM2 Billion per Qtr.
this pmetal chart says it all,from 2.3 to 6.6 in 6 months' time,an increase of 186 %,if you look at the warrant c it is even more impressive,and the best part it,this north bound bullet train is not stopping any time soon. 360Capitalist,tq for your quality input. http://www.tradesignum.com/chart/pmetal
i would think that even if chinese govt were to waive the 15% export duties,the chinese are clever enough to release their stock gradually so as not to disrupt the high prices and kill the golden goose.
By end of this month.. PMetal should trade at RM8.00 to RM9.00 level. Based on latest All in Price of Aluminium at USD2100 + Premium USD400, at last Friday closing of RM6,64, the P/E ratio is less than 9. If based on P/E of 15, the fair value should be RM11.00.
At USD2500 (All in Price of Aluminium at USD2100 + Premium USD40), PMetal should make hefty profit of RM650 million or EPS per share of RM1.18 (Based On Issued Shares of 550 Mil Shares).
The P/E for 2015 is just 6 times only based on its superior earning ability not counting on downstream activities, capacity expansion and etc.
What if Aluminium prices surge further ? The Sky is limit. This is the Best and The Only 'Explosive Returns " Long Term and Sleep Well investment In Visible in Bursa Malaysia at least until 2017, nothing comes close ...
The Superb Champ in All Bursa Stocks.. Witness my statement and comment in futures.
According to RHB analyst : Every US$100 hike in aluminium price will translate an additional RM50 Million net profit.. (Should be USD50mil and not RM50mil )
I am not agree .. it should be more based on 440,000 Metric Tonnes Smelting capacity and 80,000 extrusion capacity. Every US$100 hike in aluminium price, means extra dollar profit for PMetal as the total material cost is accounted for 15,5% of overall cost.
I can surely say,, Every hike of USD100 in aluminium price will bring in additional revenue of RM150 mil to 160 million sales based on exchange rate of USD at 3.20.. so the profit surely higher that RM50 mil as claimed.. Maybe RM150 mil addtional net profit.
### Maybe due to error of not converting USD to RM.. Should be USD50Mil extra profits
Those we follow my call to Buy since RM6.10.. should gain handsomely...
A Killing Call To Investment Community on Press Metal Berhad : The Next Superb Champion (Buy Into Aluminium Proxy Play In Malaysia : Press Metal Berhad )
Background : PMetal Rides along Aluminium Super Rally Fueled by Shortage and Booming Demand from Automotive Sectors and Commercial Aircraft Makers
Killing Factor : LME Aluminium Price : Turbo Engine of Press Metal Price Booster The current LME price of USD2100 is just the beginning stage of aluminium rally compared to its all time high of USD3400 in 2009... So, with higher aluminum price, PMetal is surely making RM1 Billion to RM2 Billion net profit per year by FY2016 and FY2017 which translate into Earning Per Share of RM 1.80 to RM 3.60. Isn't it looking attractive ??
So, by 2016/2017 .. based on P/E Ratio of 15 times it should be worth RM 36.00 to RM 54.00 with lucrative dividend incomes of 30% to 40% of yearly profit.
Investment Highlights :- 1) That is no stock in Bursa Malaysia is matching PMetal investable criteria in terms of its above industry net profit margin (boosted by aluminium price rally), Even, when aluminium price hit all time low at USD1635, the company still managed to breakeven, Thanks to the Management foresight with the right business model in creating `The World Class Low Cost Smelters. 2) Every increase of USD100 in aluminium price or premium will translate into net profit of RM140mil to RM160mil based on exchange rate of US$/RM at 3.20. 3) Possible Scenario : Imagine, when aluminium rally all the way to USD3400 and beyonds (My prediction : Aluminium will touch USD5200 by 2019), we should see improve Profit Margin and Record Breaking Net Profits on Quarterly basis on Quarter to Quarter and Year to Year basis. So, the valuation of stock prices by Stock analyst will keep on increasing. Buy Now, 4) With merely RM250 mil Paid Up Capital, It can bring in Sales Revenue of RM4 Billion and beyond and the Net Profit matching or higher than its Paid-Up capital is showing its management capability in efficiently manage the company financial resources, 5) The Stage is Set for Aluminium Rally boosted by industry shortage and huge demand of aluminium by Automotive sector and Aircraft makers. So, the prices sustainability is not an issue at all. Furthermore, it won't see any increase of industry capacity from now till 2017. 6) Based on RM7.03, the P/E is only 8 to 9 times which make it attractive for Aggressive Buy. In fact, the fair price should be RM11.00 and it is still Buy Call as long as the aluminium rally is still intact.
Remarks : The Price Looks Expensive, But, The Value of PMetal is Cheapest Than Any Penny Stocks Quoted In Bursa Malaysia,
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Joel
4,580 posts
Posted by Joel > 2014-08-28 21:41 | Report Abuse
Fr bro 360Capitalist statements above :
Aluminium price is still at early stage of bull run.. USD2100,
The all time high prices USD 3400..
The industry shortage caused by Smelters down-sizing and closed down unprofitable division will ensure the price moving higher towards USD3400.
The new demand from
1. Mammooth Industry -
1.1 Automotive Sector
1.2 Commercial Aircraft and
1.3 Electronic Gadgets
( All these will ensure strong demand to sustain the aluminium prices ! )
Average aluminium price seem to hit at USD 2,370 first high
in this September-October 2014 !
RHB INVESTMENT BANK 所预测的事@Pmetal 现在已开始浮上水面上了.
接下来这 1 - 2 星期 股价会更加受追棒 !
Correction Price 将会导致和吸引更多INVESTORS 参与@Press Metal .
Trend : Bullish !