Hot Stock Press Metal jumps 5% to 2-year high

Hot Stock Press Metal jumps 5% to 2-year high
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 05 June 2013 13:41


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KUALA LUMPUR (June 5): PRESS METAL BHD [] jumped as much as 11 sen or 4.6% to RM2.50 at noon break. This is the aluminium processor shares' highest intraday price in more than two years.

At 12.30pm, more than 2.2 million shares were transacted. This came after RHB Research initiated coverage on Press Metal and dubbed the counter a “hidden gem” that may have been overlooked.

Press Metal had traded as low as RM2.40 earlier. The RM2.50 level is the highest since May 31, 2011.

Year-to-date, the counter has risen by some 30%, outperforming the FBM KLCI's 5% gain.

RHB has initiated coverage on Press Metal with a “buy” rating and a target price of RM3.31.

“We urge investors to take the opportunity to ride on the group’s (Press Metal) potential earnings wave before the market gets wind of its actual earnings potential in next few months, as there will be limited room to capitalise on the stock’s valuation by then,” said RHB analyst Ng Sem Guan in a note.

RHB projected Press Metal’s core net earnings for its financial year ending December 31, 2013 (FY13) to grow by 152.9% year-on-year to RM161.6 million.

The research house has estimated Press Metal's FY14’s core net profit to be RM287.3 million.

“Press Metal has kept a very low profile and has been off investors’ radars. As such, its share price movement suggests that the market may have overlooked this hidden gem,” said RHB’s Ng.