Maybank Investment Bank Bhd (Maybank IB) maintained a BUY call on Press Metal Aluminium Holdings Bhd with a target price (TP) of RM5.70, based on a 25 times price-to-earnings ratio on FY25 estimated earnings.

The call is because Press Metal has reported an improvement in its environmental, social and governance (ESG) performance where it scored 63 out of 100 in its latest review. This improvement is attributed to lower greenhouse gas (GHG) emissions, improved GHG intensity and better water withdrawal efficiency.

Despite these gains, there was a noted increase in nitrogen oxides and sulphur oxides emissions in FY23. However, Maybank IB remains optimistic about the company's commitment to enhancing its ESG performance, particularly its goal to achieve carbon neutrality by 2050 and reduce Scope 1 and 2 emissions by 15% by 2025 and 30% by 2030.

From a financial standpoint, although Press Metal posted revenue of RM13.8 billion for FY23, a decline from RM15.7 billion in FY22, analysts forecasted a recovery in earnings with estimated earnings per share growth of 37.5% in FY24, bringing the core net profit projections to RM1.7 billion.

Overall, Press Metal remains a leader in the aluminium sector, supported by its strategic ESG initiatives and global market reach.