Press Metal Aluminium Holdings (PMAH MK) (Buy) - Associate drags 1Q26 earnings lower q-q

研报英文原文证据摘录

Press Metal Aluminium Holdings (PMAH MK) (Buy) - Associate drags 1Q26 earnings lower q-q

Global Markets Research

Press Metal Aluminium Holdings PMET.KL PMAH MK 29 May 2026

EQUITY: BASIC MATERIALS

RatingAssociate drags 1Q26 earnings lower q-q Remains Buy

Target priceReiterate Buy; lift TP to MRY10.40 as core smelter ops Increased from MYR 10.40remain strong and likely to grow q-q in 2Q MYR 10.30

1Q26 core earnings broadly in line Closing28 May 2026price MYR 9.00

Press Metal reported a core net profit of MYR597mn (Fig.1), down by 4% q-q due to the lower

contribution from associates (-49% q-q), dragged by Nanshan (2610 HK, Not rated) owing to higher Implied upside +15.6%

coal and bauxite prices. This brought its 1Q26 core earnings to 21% of our previous/ new forecast,

and 23% of the Bloomberg consensus estimate for the full year, which we deem in line. 1Q26 Market Cap (USD mn) 18,655.7

revenue was up 2% q-q and 5% y-y on the back of higher sales volume and higher all-in aluminum ADT (USD mn) 25.5

prices (+13% q-q; 22% y-y). 1Q26 revenue formed 24% of our previous estimate and 24% of the

consensus estimate. A higher first interim dividend of 2.5 sen was announced (1QFY25: 2 sen). Relative performance chart

Middle East conflict reshaping global aluminum supply chains

According to management, the conflict and closure of the Straits of Hormuz has already affected

40% of Gulf Cooperation Council (GCC) aluminum production through energy supply and feedstock

disruptions and damage to production facilities. Management foresees this to have far-reaching

consequences, exceeding those of the Russia-Ukraine war. The full impact on supply disruptions,

freight dislocation, and shifting market behavior is likely to become evident from 2Q onwards, with