KUALA LUMPUR: RHB Research Institute is positive on Press Metal’s latest strategic move to participate in a 20:80 JV to set up a greenfield carbon anode plant in China.It said on Wednesday this modest investment is synergistic in terms of backward vertical integration. The last traded price was RM4.16. Press Metal is teaming up with Sunstone Development Co Ltd (SDCL) to set up Shandong Sunstone & PMB Carbon Ltd Co in China to manufacture pre-baked carbon anodes. It takes 0.5 tonnes of carbon to smelt one tonne of aluminium.“We understand most smelters in the world maintain an anode plant. As we expect to see another major sequential earnings improvement in the coming quarter, this will ensure the robust free cash flow (FCF) generation helps to rapidly retire its debt,” RHB Research said.

Source: The Star September 21, 2016 01:23 UTC