Hot Stock Press Metal rises on positive outlook

by **Cals** Fri 08 May 2015, 00:47

Hot Stock
Press Metal rises on positive outlook

[You must be registered and logged in to see this image.]

By Surin Murugiah / theedgemarkets.com | May 7, 2015 : 10:11 AM MYT

KUALA LUMPUR (May 7): Shares of [size=14]Press Metal Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) rose today on the back of positive outlook for the company in the near-to-medium term.

At 9.41am, Press Metal (Fundamental: 0.95; Valuation: 2) rose 1.75% or five sen to RM2.90 with 1.07 million shares traded.

In a note today, Kenanga IB Research said Press Metal’s outlook

remained bright in the near-medium term as the research house expects earnings growth from the new capacity to start kicking-in from January 2016 onwards.

“We also reaffirm our aluminium price assumption at US$1,900/MT, as we expect aluminium prices to stabilise in later part of 2H15 when demand is expected to recover, driven by growing usage of aluminium in the auto sector,” it said.

“We like Press Metal for its solid earnings growth potential and globally competitive margins of 17.7% versus industry peers’ 12.4%,” it said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to [You must be registered and logged in to see this link.] for details on a company’s financial dashboard.)
[/size]