Press Metal hits all-time high as Iran war sparks aluminium surge

 Aluminium company’s valuation has risen 18% or RM10.66 billion to RM69.38 billion since the Middle East conflict erupted.

Press Metal’s rising market capitalisation has made it the sixth biggest company on Bursa Malaysia. (Press Metal pic)

PETALING JAYA:

 Press Metal Aluminium Holdings Bhd shares hit a new all-time high today as the war in the Middle East caused aluminium prices to rise sharply over the past two months.

The stock rose as much as 41 sen or 5.1% to RM8.48 before closing 4.3% higher at RM8.42. The shares have risen 19.4% year to date and 77.6% over the past one year.

Press Metal’s market capitalisation has risen by 18.1% or RM10.66 billion to RM69.38 billion from RM58.72 billion on Feb 27, the day before the US and Israel attacked Iran, when the stock ended at RM7.13.

Its current valuation makes it the sixth biggest company on Bursa Malaysia, placing it behind Malayan Banking Bhd, Public Bank Bhd, Tenaga Nasional Bhd, CIMB Group Holdings Bhd, and IHH Healthcare Bhd.

Aluminium prices have risen from around the US$3,100 per tonne level just before the start of the conflict on Feb 28 to about US$3,600 per tonne currently.

Prices surged following Iranian attacks on two Middle Eastern producers – Emirates Global Aluminium and Aluminium Bahrain – at the end of March.

Around 9% of global aluminium supply comes from the Gulf, and most firms in the region have been unable to export the metal since Iran effectively closed the Strait of Hormuz, tightening global supply.

In a note last month, Hong Leong Investment Bank Bhd upgraded Press Metal to “buy” and raised its earnings forecasts by 13% for the financial year ending Dec 31, 2026 (FY2026) and 18% for FY2027, citing stronger aluminium prices driven by geopolitical tailwinds as well as revised hedging positions.

Press Metal’s rising fortunes have also elevated its founder, Koon Poh Keong, and his siblings up Forbes Malaysia’s 50 Richest list, taking the No 2 spot for the first time.

The brothers edged out Quek Leng Chan, the patriarch of Hong Leong Group, in the latest update of the US financial media group’s ranking of Malaysia’s 50 richest tycoons, a fortnight ago.

Forbes said the Koon siblings were the biggest gainers in US dollar terms this year, with their net worth soaring 80% to US$9.7 billion (RM38.46 billion).

“Shares of their Press Metal, Southeast Asia’s largest integrated aluminum smelter by revenue, were up 73% from a year ago as the price of the metal surged,” Forbes said in a statement.

Press Metal was co-founded by group CEO Poh Keong, 64, who roped in several of his siblings to start an aluminum extrusion factory in 1986. He holds the largest stake at 34.1%, according to the company’s latest annual report. - FMT