KUALA LUMPUR: Press Metal Bhd’s shares rose yesterday lifted by a stronger earnings outlook.

At closing, the aluminium company’s shares perked three sen to RM1.90, with 10.39 million changing hands.

RHB Research Institute in a research note yesterday said Press Metal is set to deliver stronger earnings, riding on the aluminium price uptrend, weak ringgit, cost savings from improved efficiency and commissioning of the new port just adjacent to the company’s smelter.

“We lift our financial years 2017 and 2018 earnings forecast by four per cent and 27.4 per cent respectively, but make no changes to the financial year 2016 estimates,” it said.

The research house said key risks to Press Metal include any sharp drop in aluminium prices which might hurt the company’s medium and long-term profitability, and unexpected power supply interruptions at its smelting plant, that might damage machinery and disrupt operations and affect profitability.

RHB Research has maintained a “buy” call on Press Metal, but revised upwards the company’s target price by 52 per cent to RM2.85 from RM2.25 previously. — Bernama