Press Metal's New Venture Unlikely To Affect Near Term Earnings
Press Metal's New Venture Unlikely To Affect Near Term Earnings
Meanwhile, KAN is expected to secure bauxite supply from DSM while the final product, alumina will be sold to PMETAL.Press Metal Aluminium Holdings Bhd (PMETAL) announced that it is setting up a strategic Joint Venture (JV) project for an alumina refinery in West Kalimantan, Indonesia. The third investment in refinery ensures that 75% of its alumina requirement is locked in.
Press Metal鋁業控股有限公司（PMETAL）宣佈，將在印尼西加里曼丹島設立一個戰略性的合資企業（JV）項目，用於鋁礬土精煉廠。這是該公司在精煉廠領域的第三次投資，以確保其75%的鋁土礦需求得到滿足。
The group is investing USD240m for an 80% stake involving PT Kalimantan Alumina Nusantara (KAN) with two Indonesian parties, namely PT Alakasa Alumina Refineri (AAR) and PT Dinamika Sejahtera Mandiri (DSM). Eventually, the shareholding of KAN will be – PMETAL 80%, AAR 19.77% and DSM 0.23%.
該集團正在向Indonesian的Pt Kalimantan Alumina Nusantara (KAN)投資2.4億美元，持有80%的股份，與Pt Alakasa Alumina Refinery (AAR)和Pt Dinamika Sejahtera Mandiri (DSM)兩家印尼公司合作。最終，KAN的股權將爲PMETAL 80％，AAR 19.77％和DSM 0.23％。
The JV company KAN will undertake a project in Sanggau, West Kalimantan, covering about 980 ha of land to house an alumina refinery plant with an annual production capacity of 1.0 to 1.2m MT, including a power plant, jetty and supporting infrastructure. The total cost for Phase 1 is estimated at USD750m. There is potential for capacity expansion in Phase 2 which could add another 1.0 to 1.2m MT.
JV公司KAN將在印度尼西亞的加里曼丹島森高社區進行項目，佔地980公頃，建造一座年產能達到1.2百萬噸的鋁土礦冶煉廠，包括髮電廠、碼頭和支持基礎設施。第一階段總造價預計爲7.5億美元。第二階段存在擴建的潛力，可能增加1.0到1.2百萬噸的產能。
Meanwhile, KAN is expected to secure bauxite supply from DSM while the final product, alumina will be sold to PMETAL.
與此同時，KAN預計從DSM那裏獲得鋁礬土供應，而最終產品鋁土將銷售給PMETAL。
PMETAL had RM2.01b cash as of Jun 2024 with strong cash flow generating ability. Given its strong cashflow, the JV can be financed without taking on debt. However, PMETAL has to equity-account for this investment.
截至2024年6月，PMETAL持有2.01億馬幣現金，並具有良好的現金流生成能力。鑑於其強大的現金流，JV公司可以無需負債融資。然而，PMETAL必須對此投資進行股權覈算。
For strategic leverage purpose, this venture is not unexpected, as PMETAL also holds a 50% stake in Japan Alumina Associates (Australia) Pty Ltd (JAA) and a 25% stake in PT Bintan. These two investment projects allow PMETAL access to 230,000 MT alumina production capacity at JAA and 500,000 MT at PT Bintan.
出於戰略槓桿目的，這種創業公司並不意外，因爲PMETAL還持有日本Alumina Associates (Australia) Pty Ltd(JAA)的50％股權以及Pt Bintan的25％股權。這兩個投資項目使得PMETAL可以訪問JAA的23萬噸鋁土礦產能以及Pt Bintan的50萬噸產能。
With the KAN venture, PMETAL has effectively locked in 75% of its alumina requirement, ensuring a stable supply of raw materials, and potentially logistics savings.
通過KAN創業公司，PMETAL已成功鎖定了其75％的鋁土礦需求，確保了穩定的原材料供應，可能節約物流成本。
Kenanga maintains its OUTPERFORM call for PMETAL with a target price of RM5.80. As at 10:40am on Thursday, the company's stock traded at RM4.90. (Google-hosted Bursa updates)
Kenanga維持對PMETAL的OUTPERFORM推薦，目標價爲5.80馬幣。截至星期四上午10點40分，該公司的股票交易價格爲4.90馬幣。(來自谷歌Bursa更新)
Nevertheless, the new venture is unlikely to affect its near-term earnings. For reference, PT Bintan project took 2.5 years to reach production.
然而，這個新的創業公司不太可能影響其近期的盈利。例如，Pt Bintan項目花費了2.5年才達到生產。
Analysts favour PMETAL due to its structural cost advantage over international peers especially its access to low-cost hydro-power secured under four long-term PPA contracts ending between 2034 and 2040, solid alumina supply and green investment appeal as a clean energy source producer.
分析師看好PMETAL，因爲它在結構性成本優勢上超過了國際同行，特別是其獲得了低成本的水電力，通過四個長期的購電協議的保障，這些協議將在2034年至2040年間結束，它還擁有可靠的鋁土供應，並且作爲清潔能源生產商，具有綠色投資吸引力。
