This article first appeared in The Edge Malaysia Weekly on October 6, 2025 - October 12, 2025

Press Metal Aluminium Holdings Bhd

Press Metal Aluminium Holdings Bhd (KL:PMETAL) has been a member of The Edge Billion Ringgit Club (BRC) since the club and corporate awards were introduced in 2010, except for 2013 when its market capitalisation dipped below the RM1 billion threshold. Since bagging its first BRC trophy in 2015, Press Metal has been on the winners’ list eight times.

Some may still find it hard to believe that its market capitalisation was just over RM4 billion in 2015, or one-tenth of what it is today.

When the aluminium smelting giant was named The Edge BRC Company of the Year in 2019, its market value was close to RM20 billion. It has not looked back since. Today, Press Metal is valued at more than RM45 billion, and has been a component of the 30-stock bellwether FBM KLCI since December 2017.

Despite its scale, Press Metal continued to post resilient earnings growth. Net profit climbed from RM1.002 billion in the financial year ended Dec 31, 2021 (FY2021) to RM1.77 billion in FY2024, reflecting its position as Southeast Asia’s largest integrated aluminium producer. This reflects a three-year profit after tax compound annual growth rate (CAGR) of 20.8% between FY2021 and FY2024.

Return on equity (ROE) was in the healthy double digits during the BRC awards evaluation period, even though returns had eased from 26.77% in FY2022 to 17.91% in FY2023 before recovering to 22.92% in FY2024. That translates into an adjusted weighted three-year ROE of 22.19%.

This earned Press Metal the BRC corporate award for highest ROE over three years in the Super Big Cap category for companies with a market capitalisation above RM40 billion.

Shareholder returns, however, underwhelmed during the latest BRC award evaluation period with a negative three-year CAGR of 5.15% as its adjusted share price slipped from RM5.91 at end-March 2022 to RM4.715 at end-March 2023 and RM4.58 at end-March 2024 before retracing some losses to close at RM5.04 by end-March 2025.

Press Metal is helmed by co-founder and group CEO Tan Sri Paul Koon Poh Keong, 64. He owns 36.8% of the company.

Press Metal’s 10-member board of directors include his four elder brothers: Datuk Koon Poh Ming, who is executive vice-chairman, and Datuk Koon Poh Kong, Datuk Koon Poh Tat and Koon Poh Weng, who are executive directors. The Koon siblings are ranked fourth on Forbes’ 2025 list of Malaysia’s 50 Richest, with a combined net worth of US$5.4 billion (RM22.8 billion).

In 1986, with US$50,000 capital in hand and minimum knowledge of aluminium extrusion operations, Paul set up a small outfit in Puchong, Selangor, with only 12 workers.

Almost two decades after setting up that little shop in Puchong, the Koon brothers made a bold decision to venture upstream — making aluminium. In 2009, Press Metal built the country’s first aluminium smelting plant in Mukah, Sarawak, taking advantage of the ample power supply there. Its aluminium smelting plant at Samalaju Industrial Park in Bintulu commenced commercial operations in 2012.

Paul acknowledges that in terms of electricity, Press Metal’s smelting plants benefit from the strategic location in the Sarawak Corridor of Renewable Energy. This enables the group to access a stable and cost-effective electricity supply, predominantly generated from hydropower.

“Our long-term power purchase agreements provide cost stability as compared to the fluctuations in the price of coal and gas that affect many other smelters globally. This sustainable energy model not only supports our operational efficiency but also aligns with our commitment to low-carbon aluminium production,” he said in Press Metal’s 2024 annual report.

By optimising Press Metal’s cost structure and leveraging renewable energy, the group will continue to strengthen its competitive edge in the global aluminium industry, he believes.

Today, Press Metal is competing with the likes of British-Australian multinational metals and mining corporation Rio Tinto International Holdings Ltd and state-owned Aluminum Corp of China Ltd (Chalco), the world’s largest aluminium producer and supplier.

As Southeast Asia’s largest aluminium producer, Press Metal serves key industries such as infrastructure, transport, construction and consumer goods across global markets.

Besides its headquarters in Shah Alam, Selangor, the company also operates midstream production facilities in Sarawak and Johor and downstream production facilities in Selangor and Negeri Sembilan, as well as in Guangdong, China.

The group’s global presence is strengthened by its distribution offices in Australia, the UK and the US, enabling it to meet the growing demands of local and regional markets.

Press Metal has a midstream smelting capacity of 1.08 million tonnes per year and a downstream extrusion segment capable of producing 230,000 tonnes per year.

In its upstream investments, Press Metal has holdings in two alumina refineries — PT Bintan Alumina Indonesia and the Worsley Alumina Unincorporated Joint Venture in Australia. Additionally, the group has invested in Shandong Sunstone & PMB Carbon Co Ltd in China to secure a stable and reliable supply of carbon anodes.

In a research report dated Aug 22, Hong Leong Investment Bank Research says it expects aluminium prices to remain supported by limited supply growth in China and rising demand from clean energy applications, while easing alumina costs should further strengthen margins. The research house maintains its “buy” call on Press Metal with a higher target price of RM6.60, up from RM6.21.

On the same day, RHB Investment Bank Research — which also has a “buy” rating with a target price of RM6.26 — said it remains positive on Press Metal, supported by the US-China tariff delay, which should underpin London Metal Exchange prices. Demand remains firm as China’s aluminium imports have risen, likely driven by robust electric vehicle (EV) sales as EVs consume 20% to 25% more aluminium than internal combustion engine (ICE) vehicles.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.