Wednesday, December 8, 2010

AmResearch bullish on Press Metal

KUALA LUMPUR: AmResearch is'' bullish on Press Metal amid an improving demand/supply imbalance for aluminium. Its fair value for Press Metal was RM3.30 while the last traded price was RM2.09.

'More importantly, we believe Press Metal is on the cusp of being transformed into an integrated regional aluminium giant ' with the successful commissioning of its Mukah smelter,' it said on Wednesday, Dec 8.

AmResearch said Phase 1B of the Mukah plant was commissioned last month ' doubling its capacity to 120,000 tonnes.

'With capacity for the entire Phase 1 (US$300 million) already frontloaded, we project P Metal to show a robust FY10F-12F EPS CAGR of 64%. Valuations are exceedingly compelling at FY10F-12F PEs of only 6.0 times to 13 times.


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