New capacity from phase three of its Samalaju smelting plant, coupled with logistic cost savings and favourable raw material costs are expected to fuel its earnings over the next two years.
This optimism over its prospects has research houses such as Kenanga Research to upgrade the buildings materials sector to “overweight” from “neutral” and setting a new target price of RM13 for Press Metal. The stock closed six sen up to RM10.10 yesterday.
Kenanga believes that the upcycle of aluminium prices would persist as supply still trails the robust demand from the reopening of economies.
On the other hand, the pace of the rise in raw material was not as much as alumina prices only grew 4% quarter-on-quarter (q-o-q) to US$306 (RM1,263) per tonne on average in the first quarter of calendar year 2021 as opposed to the 9% jump in aluminium prices.
According to Kenanga, the cost of alumina made up 14.6% of aluminium prices in Q1CY21 from 15.4% in the preceding quarter – both below the normalised range of 16%-17% it used to be.
Given the favourable raw material cost, Press Metal is likely to see further margin improvements, said the research firm.
Meanwhile, the upstream acquisition of two supply chain refineries will ensure raw material supply certainty while the acquisition of PT Bintan Alumina Indonesia has also enabled transportation cost savings for the group.
Silicon: Semiconductor shortage impacting automotive industry
Posted 19th January 2021 in Industry news. By Nils Backeberg
According to Reuters, automakers around the world have been caught off-guard by a shortage of semiconductors that has required the industry to compete against the consumer electronics industry for chip supplies. Leading semiconductor manufacturers reassigned capacity from automakers after the pandemic cut down vehicle sales, instead shipping chips to companies that produce smartphones, gaming systems and other electronic goods that remained in high demand.
Several companies, including Volkswagen, Nissan, Ford, Toyota and others, have been impacted and are struggling to secure the chips to maintain production lines. All chips, whether bound for a laptop or a vehicle, start life as a silicon wafer, an industry that has always struggled to keep up with sudden demand spikes.
Roskill View
Polycrystalline silicon (polysilicon) is used in the production of silicon wafers. Polysilicon remains only the third-largest end-use for silicon metal worldwide, however, it has been the fastest growing of the three major applications for silicon metal in the past two decades with its share of global demand rising from 3% in 2000 to 20% in 2019.
Silicon metal is consumed directly in the production of poly-crystalline silicon wafers for use in photovoltaic (PV) solar cells, and indirectly in mono-crystalline silicon wafers for use in semiconductors for integrated circuits and a range of electronic equipment. Until 2007, the production of mono-crystalline silicon wafers for use in semiconductors was the largest end-use for polysilicon. The consumption of silicon metal in polysilicon began to take off significantly after 2009, fuelled in part by generous subsidies for producers and consumers of solar products in the aftermath of the 2008 global financial crisis. By 2019, the proportion of global polysilicon demand accounted for by semiconductor applications had fallen to just 16%.
Though Asia accounts for about 70% of global silicon semiconductor wafer output, China remains a relatively small player with a market share of about 15%, in contrast to its dominance of the solar value chain. The leading producing countries are South Korea, Taiwan, the USA and Japan, with over 50% of supply consolidated into the five largest producers.
The rapid advancement of technology both drives and restrains the demand for silicon chips and wafers, and the constantly changing balance of these influences has led to a haphazard growth over the last decade, while silicon wafers in the solar industry have enjoyed a consistent growth. Looking forward, Roskill forecasts that the solar industry will continue to drive growth in demand for silicon metal with double digit increases in demand to 2023. Moreover, while semiconductor demand as a whole is expected to remain in the low single-digit growth rates over the next decade, the impacts of COVID-19 are already indicating a haphazard growth year in 2021.
PMETAL, as i see it will be the BIGGEST n most valued plc in msia when EV.CAR gains traction at high CAGR. the low profile KOON bro will be so so RICH ... am not into pmetal. i have their PMBTECH n PARAGON.
EV.CAR today is < 5% on the road. In 3-5 years, it will be 50%. all these stocks would grow 10 TIMES n so would be their mkt cap values ! i.e. madness investing now...
For 12.30pm, 15 April 2021, ============================================
Any investors, search on the biggest gainer list by price, the number 1 biggest gainer is Press Metal /8869 Closed RM 10.60 (+RM 0.58)
REMARKS CREATED NEW HISTORICAL HIGH RM 10.62
(a) The main catalyst of this aluminum KING is prudence management on practical business affairs, building good working relationships with main customers, high quality connections through respectful engagement, considering many different factors in final business decision - making, effective communication with stakeholders skills, developing new workable ideas to solve customers ' problems, building trust factor within the team, Most importantly, the main leader is an extremely talented leader in the whole organization, Tan Sri Dato' Koon Poh Kong/ Paul Well assisted by the Koon brothers (i) Koon Poh Ming (ii) Dato Koon Poh Tat (iii) Koon Poh Weng (known for business on the ground /street smart) (iv) Koon Poh Kong
(b) The second catalyst is the coming bonus issue, that excites the investors interest. On the basis of one bonus share for one existing share held on 5.00 pm, 20 April 2021. ========================================= Founded in 1986, started as a local aluminum extrusion company, follow by 30 years of continuous growth and expansion, today Press Metal is a global, integrated aluminum producer with the largest presence in South East Asia, products serve many industries throughout the wide world, with wide ranges of top automotive, aviation companies that are leading technology giants.
==========================================
Vision The beliefs are in our guiding principles of Business Acumen, Quality Excellence, Global Outlook, Focused Teamwork Social Responsibility
Continuous improvement in Expansion
Remarks Will not be surprise that Press Metal is look on the current favorable situations in the Malaysian scene, not excluding some attractive KLSE listed companies, Example : Alcom /2674 that have similar business profiles that can enhance and add value on its continuous expansion programs. 15/04/2021 2:03 PM
(1) Do you have some understanding or rather done deep researches on old high for this stock? ----?
(1.1) This stock old high was RM 2.32 done on 29 June 2017, From previous analysis, From 30 May 2017, At RM 1.35,
(1.2)With 20 trading days, from 30 May 2017 /RM 1.35 to 29 June 2017/RM 2.32,
Share prices movements in technical chart, can behave in their previous manner, can Alcom /2674 follow up on her previous technical pattern, (a) 4 trading days resting = from 2 June 2017 to 7 June 2017 (RM 1.54 to RM 1.61)
(b) 3 trading days resting = from 13 June 2017 to 15 June 2017 (RM 1.75 to RM 1.85)
(c) 4 trading days resting = from 19 June 2017 to 22 June 2017 (RM 1.91 to RM 2.08)
(d) 3 trading days onwards from 23 June 2017 to 29 June 2017 Reaching the old high RM 2.32
========================================= Remarks
Can history repeat itself, Time will tell, more important it needs to reach RM 1.59/ R 2 ======================================+=====
For those investors who can wait, the next target, mid term RM 1.50,
New catalyst, on the likely " merger + acquisition" theme by the king of aluminium - Press Metal /8869 PMB Technology Bhd /7172
PMB Technology Bhd is the official sub contractor in building the exterior facade, claddings, wall curtains for Marina Bay Sands Hotel +Resort, 10, Bayfront Avenue, Singapore 018956
Alcom Bhd /2674 is the official sub contractor in building the exterior facade, claddings, curtain walls for Petronas Twin Towers, Kuala Lumpur City Centre, Jalan Ampang, Kuala Lumpur
Both are reputable aluminum facade, claddings, wall curtains panels, Manufacturers having its in house plants,
Using their in house technology in using the aluminium composite materials / ACM, these materials are distinguished by their unique features, it's lightweight, yet high rigidity qualities, excellent flatness and more importantly long lasting - coating qualities are just the construction industry required?
For your better understanding, every week, Monday, Wednesday, Friday, there were 3 units x 40 footer long conventional lorries from PMB Technology Berhad, Balakong, Selangor to Marina Bay Sands , Singapore for one whole year of 2010, meaning 156 units of 40 footer types of long lorries, just imagine the huge load of aluminium facades and claddings, wall curtains panels, were commissioned in the Marina Bay Sands Hotel + Resort, Singapore
Now, you can understand their business similarity, two of a kind, a twin?
Can it be a real winner for Alcom /2674, when the target company on takeover company will offer the premium especially in driving up the stock prices. 14/04/2021 7:05 P 15/04/2021 1:13 PM
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
keepercreeper
31 posts
Posted by keepercreeper > 2021-04-04 05:07 | Report Abuse
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