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.
TYCOON TRADE WIZARD provide dedicated stock recommendation
KLSE and signal services for FOREX and COMEX with high accuracy and
with the experts researcher fundamental and technical Analysis so
Get your free trial and make profit in it fill the information form.
No comments:
Post a Comment