KUALA LUMPUR (Nov 22): Press Metal Aluminium Holding Bhd's earnings for the third quarter ended Sept 30, 2017 (3QFY17), which posted a 25.5% increase in net profit, received mixed reviews from analysts today. 

RHB Research Institute analyst Muhammad Syafiq Mohd Salam wrote in a research note saying the quarter results came in within expectations, making up 72% of his estimates. 

"We continue to like the company and maintain our 'Buy' recommendation," Muhammad Syafiq  said.

Meanwhile, AmInvestment Bank Research said Press Metal's cumulative nine-month (9MFY17) net profit missed expectations, coming in at only 66% of its full-year forecast. 

"We believe the variance against our forecast came largely from a lower aluminium ASP (average selling price) realised versus our assumption," it said in its research note earlier today. 

As such, AmInvestment Bank Research trimmed its 2017 forecast for the average selling price of aluminium by 2% to US$1,771 per tonne, from US$1,806 per tonne previously. 

The research house maintained its 'Hold' call on Press Metal's shares, but cut the company's earnings forecast for FY17 by 12%. 

"We continue to like Press Metal, underpinned by the positive price outlook for aluminum in the international market, backed by supply constraints and strong demand from the automotive industry and infrastructure projects; its low cost structure compared to its peers, owing to the cheap hydro power that it has locked in over the long term; and its strong management as evidenced in its ability to bounce back quickly from major production disruptions in the past," AmInvestment Bank added. 

As at 11.06am, Press Metal shares were down 1 sen or 0.21% at RM4.74, after an active mid-morning trade, with 5.344 million shares exchanging hands.