=MARKET BUZZ: BIMB Starts Malaysia's Press Metal With Buy, TP MYR5.69
KUALA LUMPUR (Apr 16) -- BIMB Securities initiates coverage on Press Metal Aluminium Holdings with Buy call and target price of MYR5.69, expects 3-year net profit CAGR of 13.8%, driven by capacity production at its Samalaju smelter. Shares now flat at MYR4.75. "We are positive with its growth prospect as the management charts a clear vision for Press Metal to diversify away from its current primary ingot production into value added products," says house in investor note. "With demand for transportation, construction and electrical cable growing steadily about 3-4% annually and its correlation with aluminium prices, we believe immediate risk to down-cycle in aluminium demand is low," adds house; expects global disruption in supplies due to geopolitical issues to sustain recent gains in aluminium prices. House forecasts aluminium price will average $2,000 for 2018, followed by an increase of $50 per annum for the next 3 years.
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