In general, higher aluminium prices and the strengthening of the US dollar bode well for aluminium companies. The ordered production cuts have sent aluminium prices close to a two-year high of US$1,949 per tonne on March 1. For such an established company, LB Aluminium should command a better PER of at least 12 times,” the investor says. LB Aluminium is a big extruder in Malaysia, but Press Metal is bigger if we include its China operations. Besides, Press Metal has a smelting business as well, which is much bigger than its extrusion business,” he said.

Source: The Edge Markets March 22, 2017 06:56 UTC