KUALA LUMPUR (Feb 27): Affin Hwang Investment Bank Bhd said today it trimmed its Press Metal Aluminium Holdings Bhd earnings forecast for financial years ending Dec 31, 2019 and 2020 by 2% to 4%, to factor in softer global aluminium prices.
Affin Hwang analysts Laila Razip and Loong Chee Wei wrote in a note today that the investment bank maintained its hold call for Press Metal shares with a lower target price of RM4.48 from RM4.69 previously. At 10:35am today, Press Metal shares rose four sen to RM4.19.
"We like the group for its strong management team and its business strategy to focus on improving profit margins.
"Press Metal reported net profit of RM630 million (+6.2% y-o-y) in 2018, which was within market and our expectations. Its revenue grew by 12% y-o-y to RM9.2 billion on the back of higher aluminium selling prices and better product mix. After excluding one-off items, its 2018 core net profit of RM596 million was 7.7% y-o-y lower mainly due to higher tax expenses," the analysts said.