Press Metal Aluminium Holdings Bhd. Announces Record‑Setting First‑Quarter Profit and a Strong FY26 Outlook

Press Metal Aluminium Holdings Bhd. (KL: PMETAL) has reinforced its position as Southeast Asia’s largest aluminium smelter with a third consecutive quarter of record profit. In the first quarter of fiscal year 2026 (ended 31 March 2026), the company reported a net profit of RM 624.5 million, a 35.2 % increase from RM 461.8 million a year earlier. Revenue grew by 5.2 % to RM 4.1 billion, supported by higher aluminium prices and increased sales volumes.

Drivers of the Strong Performance

  1. Higher Aluminium Prices – International market prices for aluminium remained elevated during the quarter, boosting the company’s margin on each tonne sold.
  2. Increased Sales Volume – The smelter benefited from higher delivery volumes across its customer base, translating into a larger top line.
  3. Lower Input Costs – Raw‑material costs fell relative to the previous year, improving the company’s cost‑of‑goods sold and contributing to the profit jump.

The company’s bourse filing with Bursa Malaysia confirmed that these factors combined to produce a “record‑breaking strike” in the first quarter.

Dividend Signal and Shareholder Returns

In line with its commitment to reward long‑term shareholders, Press Metal declared a first‑interim dividend of 2.50 sen per share for FY26, an increase from the 2.00 sen paid in the prior year. The dividend will be paid on 30 June 2026.

FY26 Outlook

Press Metal’s management remains optimistic about the remainder of FY26, citing:

  • Strengthening aluminium prices that are expected to persist amid ongoing geopolitical uncertainties.
  • Moderating alumina input costs, which should cushion the smelter against raw‑material volatility.

The company projects that these conditions will enable it to maintain satisfactory earnings, with earnings per share projected to rise to 7.58 sen from 5.60 sen in the previous year.

Market Context

The company’s share price has rallied 79 % year‑to‑date, reflecting investor confidence in its operational resilience and the favourable pricing environment. With a market capitalization of approximately RM 74.2 billion and a price‑to‑earnings ratio of 35.33, the stock is positioned within a highly competitive industrial segment, yet still offers upside potential driven by commodity price dynamics.

Conclusion

Press Metal Aluminium Holdings Bhd. has demonstrated robust profitability and a disciplined cost structure in a volatile market. Its ability to capture gains from higher aluminium prices while managing input costs positions the company well for continued performance through FY26 and beyond. Investors watching the aluminium sector can view PMETAL as a case study in leveraging commodity cycles while maintaining shareholder value through targeted dividends and prudent financial management.