Press Metal Aluminium Holdings Bhd is expected to post record quarterly earnings, driven by stronger aluminium prices and surging premiums, although Hong Leong Investment Bank (HLIB) maintained its HOLD call and lowered its target price to RM8.34 from RM8.77.
HLIB expects Press Metal’s second-quarter core earnings to reach RM750 million to RM800 million, up 24% to 32% quarter-on-quarter and 47% to 56% year-on-year. This would bring first-half earnings to RM1.36 billion to RM1.41 billion, representing 47% to 49% of its FY2026 forecast.
The research house said the expected record quarter was supported by an average London Metal Exchange aluminium price of US$3,564 per tonne, compared with US$3,190 in the first quarter, while the Midwest Premium (MJP) rose above US$300 per tonne.
HLIB said the aluminium market is expected to remain in a deficit of around two million tonnes throughout 2026, with conflict-related disruptions removing about three million tonnes of supply. However, it expects prices to moderate as the market increasingly prices in a potential surplus in 2027 following new supply from Indonesia and India.
Meanwhile, MJP premiums have remained elevated at around US$350 per tonne in the third quarter, their highest level in more than a decade, due to continued physical supply tightness.
HLIB trimmed its FY2026, FY2027 and FY2028 earnings forecasts by 5%, 2% and 3% respectively following lower aluminium price assumptions.
It said the stock’s risk-reward profile remained balanced as aluminium prices moderate and the market potentially shifts into a slight surplus next year, keeping the HOLD rating with the revised RM8.34 target price.
As of 11.01 am, the stock price slipped 0.76% to RM7.87.
