Aluminum price recovery fuels Press Metal's strong H2 growth
Views : 146
Update time : 2025-09-30 14:36:07
Press Metal Aluminium Holdings Bhd, a Malaysia-based company engaged in the aluminum products sector, expects steady growth through the second half of 2025, driven by firmer aluminum prices, effective hedging, and easing input costs.
Analysts from Hong Leong Investment Bank Bhd (HLIB Research) and RHB Investment Bank Bhd (RHB Research) project improved margins, benefiting from lower carbon anode and alumina prices. The alumina-to-aluminum cost ratio is expected to stabilize at 13-14%.
Expansion projects, including the Nanshan Aluminium expansion and PT KAN alumina refinery, support long-term strength by securing a large portion of the firm's alumina needs. Despite potential risks from currency fluctuations and pricing volatility, analysts maintain a "Buy" recommendation, with target prices up to RM 6.60.
Press Metal is well-positioned to take advantage of the recovery cycle, driven by stabilization of global trade and Chinese consumption.
