Rising Tin Prices Lifts MSC's Prospects
Rising Tin Prices Lifts MSC's Prospects
Malaysia Smelting Corporation Bhd's (MSC) recent performance and outlook of a core net profit of RM18.3 million for 1Q24, showing a significant 66% increase quarter-on-quarter but a 48% decline year-on-year (yoy) highlighted by Malacca Securities Investment Bank (Malacca Securities), in its update today (9 July, Tuesday). Despite this, Malacca Securities foresees the potential for an earnings recovery in 2H24, buoyed by strong tin prices observed in the first half of the year.
马来西亚冶炼公司（MSC）最近的业绩和前景表现出第一季度核心净利润1830万马币，同比下降48%。这一数据是由Malacca Securities Investment Bank（简称MSC）在7月9日（周二）发布的最新更新中强调的，较上一季度增长了66%。尽管如此，MSC认为在2024年下半年有望实现盈利复苏，因今年上半年观察到强劲的锡价格支撑。
Malacca Securities upgraded MSC to a BUY rating with an unchanged target price (TP) of RM3.40. This valuation is based on a P/E ratio of 15.0x relative to MSC's projected FY24 EPS of 22.7 sen, positioned at a 30% discount to its 5-year average P/E of 21.4x. The decision reflects optimism surrounding the commodity upcycle, increased investments in EVs, solar energy, and the recovery in Chinese markets, all of which bolster tin prices and MSC's earnings potential.
Malacca Securities将MSC升级为“买入”评级，并维持目标价不变（3.40马币）。这一估值基于15.0倍的市盈率，相对于MSC预计2024年每股收益22.7仙的市盈率，其定位在5年平均市盈率21.4倍的30%折扣处。这一评级反映了对商品周期、在电动汽车、太阳能、中国市场复苏等方面的投资增加以及锡价格和MSC盈利潜力的乐观态度。
Tin prices demonstrated resilience, rising from USD24,666 in 4Q23 to USD26,397 in 1Q24 and further to USD32,325 in 2Q24, supported by supply disruptions in Indonesia and Myanmar, alongside robust demand from the semiconductor and electronics sectors globally.
由于印尼和缅甸的供应中断以及全球半导体和电子行业的强劲需求支撑，锡价格表现出了弹性，从4Q23的24,666美元上涨至1Q24的26,397美元，进一步上涨至2Q24的32,325美元。House强调了MSC股价和锡价格之间的强相关性，表明未来具有较高市盈率的潜力。他们强调锡价格的下行风险极小，支撑着电动汽车、电子和太阳能等领域的持续需求，使MSC成为当前市场环境下对投资者具有吸引力的选择。
The House highlighted the strong correlation between MSC's share price and tin prices, indicating a potential for an elevated P/E in the future. They emphasized minimal downside risks for tin prices, supported by sustained demand from EV, electronics, and solar sectors, making MSC an appealing choice for investors in the current market environment.
该机构强调了MSC在有利商品周期当中的战略地位和关键领域的前景，并建议投资者考虑其投资组合。目标价表示相对当前水平的巨大上涨空间，对于想要利用预期锡价格的复苏和增长的投资者来说，MSC可能是一个有吸引力的选择。
Malacca Securities advises investors to consider MSC for its strategic position in a favourable commodity cycle and promising outlook in key sectors. With the TP indicating substantial upside from current levels, investors interested in leveraging the anticipated recovery and growth in tin prices may find MSC an attractive addition to their investment portfolio.
Malacca Securities建议投资者考虑MSC在有利商品周期当中的战略地位和关键领域的前景。由于目标价表示相对当前水平的巨大上涨空间，对于有意利用预期锡价格的复苏和增长的投资者而言，MSC可能是一个具有吸引力的投资组合补充。