0110 GMT - Press Metal Aluminium's 4Q core earnings may be sequentially lower due to several headwinds, Hong Leong IB analyst Brian Chin says in a note. These include higher alumina prices, reduced smelting margins, and a loss of smelter capacity caused by a fire incident, which offset the benefit of higher average aluminium prices. He tips 4Q core earnings to be 2.6%-8.7% lower on quarter at MYR375 million-MYR400 million, but 17%-25% higher on year. Chin believes earnings downside could be supported by record contributions from associate PT Bintan due to strong alumina prices and forex gains. Hong Leong maintains a buy rating on Press Metal with a target price at MYR6.21. Shares are unchanged at MYR4.98. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
January 20, 2025 20:10 ET (01:10 GMT)
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