Global aluminium price rise since May and hit 2014.58 USD/t
at August 7, 2014 due to the global aluminium shortage. Global aluminium
producers have done well to curtail output. Coupled with the absence of new
smelting capacity outside China (beyond the few being ramped-up now) and
moderate demand growth, the market is generally expecting its first supply
deficit in a decade from 2014. This favourable development has lifted the
sector’s fundamentals and seen the LME’s aluminium cash price breaking the
US$2,000 per tonne psychological barrier.
FY14 and FY15 aluminium price estimates to US$2,200 and
US$2,400 respectively despite the belief that there is more upside coming.
The global aluminium shortage phenomenon drives the KLSE aluminium
stock price. We know that the superstar - PMETAL (8869) has climbed from its
low of RM2.31 in April to RM5.95 at the last trading day.
So, today our focus is Aluminium Company of Malaysia Berhad (ALCOM
2674). ALCOM’s share price gap up and its volume increase since last two day. We
can see that ALCOM (2674) is trading uptrend now. Will the motivation continuous?
Will it another PMETAL?
Let's see its share price movement,
Current
share price: RM0.85
NTA: RM1.34
Dividend:
RM0.05
A Quick View of the Company Profile
ALCOM (2674) is the leading manufacturer of aluminium rolled
products in Malaysia and the surrounding region. With an output capacity of
about 30kt per annum, ALCOM has a sizeable market in the ASEAN region, besides
the North African and Middle Eastern regions. Almost half of ALCOM's annual
production is exported to markets in Thailand, Singapore, Brunei, Philippines,
Vietnam, Taiwan, Hong Kong, Japan, South Korea, Middle East, Egypt and
Australia.
The Company's range of aluminium rolled products include:-
1) Specialties which comprise of flat and coil sheets,
embossed sheets, cladding sheets, roofing sheets, stamps parts for capacitors
are used in the transportation, building and electronics industries;
2) Foil stock for packaging industries, and
3) Bare and coated Fins stock for air-conditioned
industries.
ALCOM has been listed on the Bursa Malaysia Securities
Berhad since 1969.
Alcom Nikkei Specialty Coatings Sdn Bhd (ANSC), a wholly
owned subsidiary of ALCOM was incorporated in 1991 as the first plant outside
of Japan to produce pre-coated finstock with Japanese technology supported by
Nippon Light Metal Co. Ltd. ("NLM") of Japan.
With strong technical and R&D support from Novelis Inc.,
and NLM, ALCOM is recognized for its high quality, reliability and product
innovation delivering solutions in all of its diverse range of product
offerings.
ALCOM's reputation is further enhanced as ALCOM's ultimate
parent company Aditya Birla Group of Conglomerate based in Mumbai has built a
world class business operation.
Happy Trading
Asianbuffett
