KUALA LUMPUR (May 30): Press Metal Aluminium Bhd (KL:PMETAL) said its net profit climbed 44.7% year-on-year (y-o-y) for the first quarter, thanks to higher sales volume and a stronger US dollar.

Net profit for the three months ended March 31, 2024 (1QFY2024) was RM408.04 million compared to RM281.97 million in 1QFY2023, Press Metal said in an exchange filing. Revenue for the quarter rose 17% to RM3.62 billion from RM3.07 billion in 1QFY2023.

“We have a positive start in 2024 following an upturn in economic activities, especially in the Asian market which drove higher demand for aluminium,” Press Metal said.

The company declared a first interim dividend of 1.75 sen for the quarter under review, the same amount in the previous year’s corresponding period.

Prices of aluminium have rallied along with other base and precious metals. The three-month aluminium futures have gained nearly 7% so far this year on the London Metal Exchange, thanks to robust demand and supply concerns.

Going forward, the company said it aims to tap into the US-China trade war.

“The trade war has resulted in the implementation of tariffs and the imposition of restrictive policies toward certain countries,” Press Metal said. “Although this may complicate supply chain and metal flow, we will seek to leverage these shifting dynamics to our advantage.”

Press Metal also said its emphasis on low-carbon aluminium production allows it to capitalise on shifting buyer preferences away from less sustainable sources.

“Despite subdued construction and property sectors, global investments in renewables and electric vehicles continue to drive the demand for aluminium,” it noted.

Shares of Press Metal climbed 22 sen or 4.10% to RM5.59, valuing the group at RM46.06 billion. Year to date, the counter has climbed 15%.