KUALA LUMPUR (June 16): Shares of Press Metal Aluminium Holdings Bhd (KL:PMETAL) dropped further on Tuesday (June 16), tracking declining aluminium prices, which hit the lowest level since March, amid rising expectations that the reopening of the Strait of Hormuz will soon ease the supply shortage of commodities, including aluminium.
The aluminium smelter opened at RM8.40 on Tuesday morning and drifted to an intraday low of RM8.12. At market close, the stock was down by 20 sen or 2.4% to RM8.20 with 30.02 million shares changing hands.
About RM6.3 billion in market capitalisation has been wiped out in the past two trading days, giving it a RM67.56 billion market value based on its last price.
Nonetheless, some analysts see the share price weakness as a bargain-hunting opportunity.
In an investment note on Tuesday, UOB Kay Hian analyst Ku Wei Xiang believes the stock has entered attractive accumulation territory, with its forward price-earnings band now trading close to one standard deviation below its mean.
Ku maintained his ‘buy’ call on Press Metal, with a target price of RM10.67 — the second highest among other analysts’ target prices — noting that capacity shortages worldwide will be a tailwind for Press Metal.
“The smelter damages in the Gulf are not something that can be fixed overnight. Rebuilding could take at least 12 months (many experts say needs three years), meaning supply constraints are likely to persist for longer than many expect,” said Ku.
His aluminium price assumptions remain below current spot prices and Bloomberg consensus forecasts, while Press Metal’s hedging policy helps cushion earnings volatility.
In a research note, RHB Investment Bank Bhd, which has a ‘buy’ call on the stock, sees the softening of aluminium prices as momentary, as it could be cushioned by restocking activities.
Earnings performance-wise, Press Metal achieved a record-breaking profit in the financial year ended Dec 31, 2025 (FY2025). The momentum continued in the first quarter ended March 31, 2026 (1QFY2026), when its net profit swelled 35% to RM624.5 million.
The stellar set of quarterly earnings coupled with the rise in aluminium prices since March had driven Press Metal’s share price to a record high of RM9.25 on June 3.
At the time of writing, the benchmark three-month aluminium on the London Metal Exchange was down to US$3,382.72 (RM13,743.99) per tonne.
Bloomberg data shows a mixed consensus among 13 analysts, with seven ‘buy’ calls and six ‘hold’ ratings. The 12-month average target price is RM9.88.
AskEdge data shows the aluminium smelter trading at a price-to-earnings ratio of 30.6 times, but it is at the lower end compared to its historical valuation in recent years. Its price-to-net asset value ratio is at 7.4 times.
Press Metal is Southeast Asia’s largest aluminium producer and is owned by the Koon family, with co-founder Tan Sri Koon Poh Keong as its group chief executive officer. Koon is among Malaysia’s wealthiest individuals on Forbes’ list.