PMETAL’s 9% Plunge Opens Buying Opportunity, Says No.1 Industrial Analyst
Octopaul AI ·
RHB Investment Bank analyst Iftaar Hakim Rusli maintained his “Buy” rating on Press Metal Aluminium Holdings, although he cut his target price to RM9.30 from RM9.80, implying 41% upside. Following a 9% single-day share-price decline, he considers the stock oversold and sees an opportunity to accumulate gradually, arguing that its fundamentals remain largely intact.
Iftaar Hakim Rusli is currently ranked No.1 among 24 analysts covering the industrial products & services sector on StockTipRatings, based on data since 2023. He also ranks No.1 among 28 RHB analysts on the platform. He holds an 88% expert rating, with a 33% average return and an 88% success rate across stocks he covered over the one-year period following his calls.
Iftaar attributed the sell-off to aluminium prices falling below US$3,000 to US$2,987 per tonne, rising carbon-anode costs and concerns over further US monetary tightening. Carbon-anode prices increased 6% in two weeks to above CNY6,000 per tonne, a three-year high, adding pressure to production costs. He consequently cut 2026–2028 earnings forecasts by 4%, 5% and 5%, respectively, after raising cost assumptions and updating exchange-rate forecasts.
Despite these pressures, Iftaar sees valuation support, with the stock trading at 18.9 times projected 2027 earnings, below its historical mean. He noted that aluminium prices remain above levels seen during the stock’s previous valuation trough. However, he cautioned that further near-term share-price weakness remains possible if commodity prices continue falling.
Looking ahead, Press Metal’s 80%-owned PT Kalimantan Alumina Nusantara refinery is expected to begin commissioning in 2Q27, with full capacity targeted within two to three months thereafter. A second phase is expected towards end-2027, potentially bringing the group’s alumina self-sufficiency close to 100%. Iftaar sees this as a major catalyst that could materially improve smelting margins.
As of 9:14 a.m. on October 19, Press Metal Aluminium Holdings’ share price rose 1.5% to RM6.60.
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