As highlighted by RHB Research, Press Metal Aluminium Holdings Bhd is securing a core profit of over RM2 billion for the very first time in the financial year ending December 31, 2025 (FY25). This marks a milestone, which holds the attribute of the rising aluminium price and stable alumina rates.
On February 26, 2026, the aluminium producer will be unveiling its Q4 results. To this, analysts anticipate that the core profit after tax and minority interest will range from RM650 million to RM730 million for 4Q FY25. This would bring the total earnings for the year to approximately RM2.2 billion to RM2.3 billion.
The anticipated improvement is mainly because of the rising aluminium prices on the London Metal Exchange (LME), which climbed 8 per cent to reach USD 2,830 per tonne. In contrast, alumina prices saw a decline of 10 per cent from the previous quarter, settling at USD 319 per tonne. This shift has brought the spot alumina-to-aluminium cost ratio down to around 10 per cent.
Looking at RHB Research, compared to last year, the firm’s earnings are set to jump by 45 per cent to 65 per cent. This boost is expected to come from a 10 per cent increase in LME prices and a significant 54 per cent drop in alumina prices, although it will be somewhat countered by a 38 per cent rise in carbon anode costs year-on-year.
Additionally, the firm stated that aluminium’s current prospects are intact. However, prices dropped seven per cent in four days after Kevin Warsh was nominated as the next US Federal Reserve chair.
It noted that Australia’s South32 confirmation of plant wind down at Mozambique in March will incur a USD 60 million one-off cost. While the shutdown may have been somewhat priced in, it is believed this reinforces the already tight aluminium supply situation, keeping prices elevated and supporting physical premiums.
The firm kept its “Buy” call on the stock with a target price of RM8.50.
