KUALA LUMPUR (May 25): Malaysia Smelting Corporation Bhd (KL:MSC) rose on Monday to a record high as analysts scrambled to raise their forecasts amid a jump in earnings.
Net income has already accounted for one-third of the consensus full-year forecast three months into the year, and prospects remain bright as resilient demand from semiconductors, electronics, and clean energy continues to exceed supply, said Public Investment Bank and Apex Securities.
“Outlook for the tin market remains positive, with prices expected to stay elevated amid a looming supply deficit,” said Public Investment, the most bullish research house on the stock.
Shares of Malaysia Smelting rose as much as nine sen or over 4% in early trade to RM2.27, a new all-time high since its listing more than three decades ago. The counter ended the day flat at RM2.18, valuing the company at RM1.83 billion, after more than 3.98 million shares changed hands.
Both Public Investment and Apex Securities have the stock on ‘buy’ calls, in line with the majority. The consensus is now looking at the stock heading towards RM2.57 in the next 12 months, based on the average target price of four research houses tracked by Bloomberg.
Prices of tin have surged 32% so far this year to US$53,900 (RM213,039.75) per tonne on the London Metal Exchange amid resurgent worries over tightening supply of the metal used in everything from circuit boards to food packaging.
Apart from shipping disruption due to the geopolitical conflict in the Middle East, tin is also facing supply constraints following a crackdown on illegal mines in Indonesia, the world’s biggest exporter of tin.
Malaysia Smelting “should continue to benefit from firmer tin prices, improved ore visibility and operational efficiencies following the consolidation of smelting operations at Pulau Indah”, said Apex Securities.
There is now a “clearer pathway” towards earnings growth and margin expansion over 2026-2027, the house added.