West Wing, Level 13,

Berjaya Times Square,

No 1, Jalan Imbi,
55100 Kuala Lumpur INDUSTRIAL PRODUCTS
For Internal Circulation Only Tel: (03) 21171888
KDN PP 8927/06/2011(029623) Fax: (03) 21427678 13 Aug 2010

Press Metal Berhad Revenue in line

2QFY10 Results Highlights:
♦ NEUTRAL: We reiterate Neutral with our target price pegged at RM1.48 based on
Neutral
FY10’s EPS of 21.1sen and PER of 7.0x.

Current Price RM 1.43

Target Price RM 1.48 ♦ Revenue is on track: Press Metal’s 1HFY10 revenue accounted for 55.0% of our full
Consensus Price RM 1.49 year forecast with revenue contribution from their aluminum smelting plant in
Mukah, Sarawak. Their 2QFY10 revenue increased by 59.6%y/y to RM449.5mn was
mainly due to higher sales volume.

Key Statistics
♦ Weaker PBT: While Press Metal’s q/q revenue rose by 13.8% to RM449.5mn in
Bloomberg Ticker PRESS MK
2QFY10, PBT dropped by 7.1% to RM21.0mn (ex-negative goodwill of RM18mn).
Shares Issued (mn) 368.4
Erosion of PBT was due to weaker selling price of aluminum during the quarter.
Market Capitalisation
526.9
(RM’mn)
52 Week Hi/Lo Price (RM) 1.60 ♦ Bottomline: 1HFY10’s net profit of RM29.6mn remains close to our forecast of
Est Free Float (mn) 1.96 RM59.4mn FY10, making out 49.8% of FY10’s projection after stripping off their
YTD Returns (%) 17.2 RM18mn negative goodwill incurred in 1QYF10.
Beta (x) 1.5

♦ Dividend: Press metal declared an interim dividend payment of 2.0% per ordinary
Major Shareholders (%)
share was declared for FY10.
Koon Family 34.7
Kwan Family 5.9
FY Dec 2007A 2008A 2009A 2010F 2011F
Revenue (RM’mn) 1,328.3 1,160.7 1,133.2 1,533.2 1,693.2
1-Year Share Price Performance EBITDA (RM’mn) 542.9 137.2 159.1 2,202.9 2,384.2
Pretax profit (RM’mn) 444.1 34.7 40.1 1,112.9 1,294.2
Net profit (RM’mn) 434.3 10.5 26.7 77.4 91.8
Net profit margin 32.7% 90.0% 2.4% 5.0% 5.4%
EPS (sen) 118.2 2.9 7.3 21.1 25
EPS Growth 2080.6% -97.6% 154.7% 190.0% 18.6%
PER (x) 1.2 49.4 19.4 6.7 5.6
DPS (sen) 2.6 0.9 1.6 2.0 2.0
Dividend Yield 1.8% 60.0% 1.1% 1.4% 1.4%
Price/NTA per share (x) 0.7 0.6 0.6 0.6 0.5
ROE 58.5% 1.3% 3.2% 8.4% 9.1%
Analyst: Research Team ROA 27.1% 50.0% 1.1% 3.2% 3.6%
Email: research@interpac.com.my EBITDA margin 40.9% 11.8% 14.0% 14.4% 14.1%
EBIT margin 35.5% 6.5% 6.8% 9.8% 9.9%
Debt to Equity Ratio (x) 0.8 1.2 1.5 1.3 1.3
Net Gearing -37.9% 9.6% 45.1% 21.1% 19.3%

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 13 Aug 2010

FY Mar (RM' mn) 2Q10 2Q09 y/y chg 1Q10 q/q chg FY10 FY09 y/y chg
Revenue 449.5 281.7 59.6 395.0 13.8 844.5 539.5 56.5
EBIT 35.7 22.0 61.8 54.7 (34.8) 90.4 23.0 293.3
EBIT Margin (%) 7.9 7.8 1.4 13.9 (42.7) 10.7 4.3 151.2
Finance Cost (15.2) (7.8) 93.4 (14.4) 5.2 (29.6) (18.7) 58.6
PBT 21.0 14.6 43.8 40.6 (48.3) 61.6 4.7 1,198.3
PBT Margin (%) 4.7 5.2 (9.9) 10.3 (54.6) 7.3 0.9 729.3
Tax expenses (4.9) (1.3) 272.4 (5.5) (10.9) (10.4) (4.5) 129.9
Net Profit (ex MI) 15.2 13.7 10.9 32.4 (53.0) 47.6 4.9 868.6
Net Profit margin (%) 3.4 4.9 (30.5) 8.2 (58.7) 5.6 0.9 518.7
EPS(Sen ) 4.1 3.7 10.9 8.8 (53.0) 12.9 1.3 868.6

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 13 Aug 2010

Ratings System
Ratings: Description:
OUTPERFORM Total return is expected to exceed 15% in the next 12 months
NEUTRAL Total return is expected to be between above –15% to 15% in the next 12 months
UNDERPERFORM Total return is expected to be below -15% in the next 12 months

Abbreviation
Abbreviation Definition Abbreviation Definition
PER Price Earnings Ratio CAGR Compounded Annual Growth Rate
PEG PER to Growth CAPEX Capital Expenditure
EPS Earnings per Share DPS Dividend per Share
FYE Financial Year End ROA Return on Asset
FY Financial Year ROE Return on Equity
CY Calendar Year PBT Profit Before Tax
m/m Month-on-Month PAT Profit After Tax
q/q Quarter-on-Quarter EV Enterprise Value
y/y Year-on-Year EBIT Earnings Before Interest And Tax
YTD Year-to-Date EBITDA EBIT Depreciation & Amortisation
p.a. Per Annum WACC Weighted Average Cost of Capital
DCF Discounted Cash Flow NTA Net Tangible Asset
FCF Free Cash Flow BV Book Value
NAV Net Asset Value

IMPORTANT: This report has been prepared by Inter-Pacific Research Sdn Bhd for purposes of CMDF-Bursa Research Scheme ("CBRS")
administered by Bursa Malaysia Berhad and has been compensated to undertake the scheme. Inter-Pacific Research Sdn Bhd has produced this
report independent of any influence from CBRS or the subject company. For more information about CBRS and other research reports, please visit
Bursa Malaysia’s website at: http://www.bursamalaysia.com/website/bm/listed_companies/cmdf_bursa_research_scheme/

Published and Printed by:

Inter-Pacific Research Sdn Bhd (449005-X)
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No.1, Jalan Imbi,
55100 Kuala Lumpur
General Line : 03-2117 1888 Fax : 03-2142 7678

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