Press Metal Aluminium shares hit multi-day highs on strong aluminium pricing trend – 28 January 2026
Shares of Press Metal Aluminium Holdings Bhd reached new highs in late January as analysts maintained bullish outlooks, citing robust LME pricing, a weaker U.S. dollar and strong earnings prospects amidst tight global supply.
👉 Source: Business Today Malaysia / RHB Research outlook — https://www.businesstoday.com.my/2026/01/26/press-metal-capitalising-from-aluminium-price-surge/?utm_source=chatgpt.com
Summary :
RHB Investment Bank Bhd (RHB Research) maintained its BUY call on Press Metal Aluminium Holdings Bhd with a target price of RM8.50, signalling potential upside of 15% from the current RM7.41.
The research house reported the company is well-positioned for robust earnings growth in FY26, driven by higher aluminium LME prices and a favourable aluminium-to-alumina cost ratio.
RHB Research highlighted that aluminium prices are expected to remain supported amid a weaker US dollar, historically tight supply and elevated copper prices linked to electrification and energy transition trends.
Press Metal’s outlook is underpinned by a structurally weaker US dollar in 2026, expected to follow rate cuts of 50 basis points, de-dollarisation trends and increased liquidity in the US market.
USD/MYR declined 9.3% year-on-year in 2025 to RM4.06 and currently trades at RM4.02, with further downside anticipated.
Aluminium prices also correlate closely with copper, which is at an all-time high, reflecting sustained demand from electric vehicles, data centres and power grid infrastructure.
On the cost side, alumina prices have fallen 54% year-on-year to US$310 per tonne, now representing 10–11% of aluminium prices, while bauxite prices eased 13% in 2025.
RHB Research revised aluminium LME assumptions to US$2,950 per tonne for FY26 and US$2,850 for FY27, with forecasts for FY25–27 raised by five, 17 and 18% respectively.
The research house noted that Press Metal trades at 22 times FY26 forward earnings, within its three-year average and remains attractive amid a favourable cost environment.
Key risks include faster-than-expected supply growth, a plunge in aluminium prices and weaker demand from the renewable energy sector.
Despite a strong 2025 share price run, RHB Research believes Press Metal retains upside potential supported by market fundamentals.
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