Press Metal Q1 net profit jumps 53.9% on higher production output, selling prices

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KUALA LUMPUR (May 6): Press Metal Bhd's net profit jumped 53.9% to RM43.14 million or 3.58 sen a share for the first quarter ended March 31, 2015 (1QFY15) from RM28.03 million or 5.48 sen a share a year ago, on higher production output and selling prices.

Revenue for 1QFY15 came in at RM1.06 billion, a 17.7% increase from RM897.11 million in 1QFY14. 

Press Metal also declared a first interim dividend of 3 sen per share for the financial year ending Dec 31, 2015 (FY15), payable on June 2, 2015.

In a filing with Bursa Malaysia today, Press Metal (fundamental: 0.95; valuation: 2) said the higher revenue achieved was due to higher production output from the recovery of its Mukah Smelting Plant that was shut down in June 2013 due to a power outage.

Production at the plant resumed at full operation in April last year, coupled with higher metal selling price during 1QFY15, it added.

Going forward, Press Metal said the general business environment remains challenging and commodity prices have declined this year compared with the same period last year.

"However, recently, sentiment seems to have turned positive with oil and other commodities prices traded higher, including aluminum price traded on the London Metal Exchange," it said.

"Our management will remain focused in improving its operational efficiency and increase its value added products in order to stay competitive in the market," it added.

Press Metal expects to achieve satisfactory result for this financial year.

The stock closed 3 sen or 1.04% lower at RM2.85 today, for a market capitalisation of RM3.7 billion.

(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.)