Press Metal Aluminium Shines in Q1 2025: A Deep Dive into Their Latest Financials
Another quarter, another look into the financial health of Malaysia’s aluminium giant, Press Metal Aluminium Holdings Berhad (PMAH). The company has just released its First Quarter 2025 results, and there’s plenty to unpack. From robust revenue growth driven by higher metal prices to a significant boost in profitability from its associate companies, PMAH appears to be navigating the global economic landscape with strategic agility. But it’s not all smooth sailing; market uncertainties, particularly around international trade policies, remain a key factor. Let’s dive into the numbers and see what’s powering this industrial powerhouse and what lies ahead.
Q1 2025 Financial Highlights: A Story of Growth
Press Metal Aluminium has delivered a strong performance for the first quarter ended 31 March 2025, demonstrating resilience and strategic execution amidst a dynamic market. The key financial indicators show a positive trajectory, primarily fueled by higher metal prices and improved contributions from their investments.
Q1 2025 Performance
Revenue: RM3,897,248k
Profit Before Tax (PBT): RM629,379k
Profit for the Period (Net Profit): RM547,430k
Basic Earnings Per Share (EPS): 5.60 sen
Q1 2024 Performance
Revenue: RM3,616,748k
Profit Before Tax (PBT): RM540,943k
Profit for the Period (Net Profit): RM495,605k
Basic Earnings Per Share (EPS): 4.95 sen
Revenue Growth: The Group’s revenue climbed to RM3.90 billion in Q1 2025, a significant 7.8% increase compared to RM3.62 billion in the same period last year. This boost was largely attributed to the higher average metal prices during the quarter.
Profit Before Tax (PBT) Surge: PBT saw an impressive 16.3% jump, reaching RM629.38 million from RM540.94 million in Q1 2024. This improvement was a direct result of the higher metal prices and a stronger profit contribution from its associated companies.
Net Profit and EPS on the Rise: The profit for the period increased by 10.5% to RM547.43 million. Consequently, basic earnings per share rose by 13.2% to 5.60 sen, reflecting healthy profitability for shareholders.
Segmental Performance: Smelting Leads the Way
PMAH’s business is diversified across several key segments. For Q1 2025, the Smelting division continued to be the primary revenue and profit driver, supported by contributions from Extrusion and Refinery operations.
| Business Segment | Revenue (RM’000) | Segment Result (RM’000) |
|---|---|---|
| Smelting | 3,222,957 | 442,145 |
| Extrusion | 529,427 | 22,872 |
| Refinery | 100,543 | 46,989 |
| Investment holding and others | 44,321 | (14,096) |
The significant contribution from associates, which saw their share of profit nearly double by 95.1% to RM169.65 million, also played a crucial role in the overall profit growth. This highlights the value of PMAH’s strategic investments.
Financial Health and Cash Flow Management
The company’s balance sheet remains robust. Total assets grew to RM17.99 billion as of 31 March 2025, up from RM16.63 billion at the end of 2024. This growth was mirrored in the total equity, which increased to RM10.73 billion from RM10.31 billion. Net assets per share also saw an increase from RM1.03 to RM1.07.
A notable highlight in the cash flow statement is the substantial increase in cash and bank balances, rising from RM1.51 billion at 31 December 2024 to RM2.95 billion at 31 March 2025. This was significantly bolstered by a net cash inflow from financing activities of RM734.46 million, a remarkable turnaround from a net outflow in the previous year. This was primarily driven by the successful issuance of RM1.5 billion in Islamic Medium-Term Notes, strengthening the company’s liquidity position for general corporate purposes, including capital expenditure and working capital.
Dividend Announcement
In a positive move for shareholders, the Board of Directors has approved a first interim single-tier dividend of 2.0 sen per ordinary share for the financial year ending 31 December 2025, amounting to approximately RM164.8 million. The book closure date is 9 June 2025, with payment scheduled for 24 June 2025.
Navigating Uncertainties: Risks and Future Prospects
While the first quarter results are strong, Press Metal acknowledges the prevailing uncertainties in the global economic environment. The ongoing negotiations surrounding U.S. tariff policies, particularly after the 90-day pause, introduce an element of unpredictability. The full impact of these policies on the broader economy and consumer demand is yet to be clearly defined.
Despite these challenges, there are clear opportunities for Press Metal. The company is well-positioned to benefit from the growing demand for low-carbon aluminium products and the trend of manufacturing operations relocating to this region. The global aluminium market is expected to remain largely balanced in 2025, with global production growth anticipated to be slower. While demand growth from sectors like electric vehicles, renewables, and grid infrastructure might moderate compared to previous years due to macroeconomic uncertainties, the overall balance is expected to hold.
Press Metal’s strategy involves leveraging its robust financial strength, making strategic growth investments, and maintaining an efficient operating model. This approach aims to enhance its competitiveness and enable the company to capitalize on emerging opportunities within the evolving industry landscape. Barring unforeseen circumstances, the Board of Directors anticipates a satisfactory performance for the full financial year 2025.
Summary and
Press Metal Aluminium Holdings Berhad has delivered a commendable performance in Q1 2025, marked by solid revenue and profit growth, significantly boosted by higher metal prices and strong contributions from its associated companies. The successful issuance of RM1.5 billion in Sukuk Wakalah has further strengthened its balance sheet and liquidity, providing a solid foundation for future growth and operational flexibility. The company’s focus on low-carbon aluminium and strategic investments positions it favorably to capture new market opportunities.
However, it is important for investors to remain mindful of the external factors that could influence future performance. The report highlights:
- Global Trade Policies: The evolving U.S. tariff policies and ongoing international trade negotiations introduce an element of uncertainty that could impact demand and pricing dynamics.
- Macroeconomic Headwinds: Broader macroeconomic uncertainties could lead to more modest demand growth in key sectors like electric vehicles and renewable energy infrastructure compared to previous periods.
Looking ahead, Press Metal’s proactive strategies and strong financial position suggest it is well-equipped to navigate these challenges and sustain its satisfactory performance. The dividend announcement also reflects the company’s commitment to returning value to its shareholders.
