This article first appeared in Capital, The Edge Malaysia Weekly on December 25, 2017 - December 31, 2017

A rise of over 200% in Press Metal Aluminium Holdings Bhd’s share price has made the aluminium smelter the top gainer among the super big cap companies with a market capitalisation of RM10 billion and above.

Strong earnings growth and higher aluminium prices helped to drive Press Metal’s share price higher throughout 2017. Its inclusion as an FBM KLCI component stock has further boosted the rally. The share price rose to an all-time closing high of RM5.20 on Nov 30.

Press Metal has gained 219% to RM4.98 as at Dec 15, from last year’s adjusted closing of RM1.56 on Dec 30, 2016.

Net profit grew 25% to RM452.6 million year on year for the nine months ended Sept 30, 2017, thanks to higher output at its Samalaju Phase 2 smelting plant and higher aluminium price. Revenue jumped 30% to RM6.02 billion y-o-y in the same period.

The group has benefited from the rising aluminium price after China’s Shandong National Development and Reform Commission ordered the closure of 3.21 million tonnes of aluminium production by this year, representing 9% of China’s total production. Aluminium prices have climbed above US$2,000 per tonne since the announcement in August, compared with a range of US$1,500 to US$1,700 per tonne in 2016.

Nitrile glove maker Hartalega Holdings Bhd is the second top gainer among the super big caps this year. Its share price has doubled to RM9.75 as at Dec 15 against last year’s adjusted closing of RM4.76.

The rubber glove maker did not see much price action earlier in the year, hovering below the RM5 mark. The group’s better-than-expected earnings growth drew interest in the stock. The steady climb of the share price started in May, when Hartalega announced a 45% jump in net profit for the fourth financial quarter ended March 31, 2017.

It has maintained its earnings momentum in the financial year ending March 31, 2018, achieving 65% growth in net profit to RM209.7 million for the six-month period ended Sept 30 against RM127.39 million in the previous corresponding period. Revenue soared 34% to RM584.62 million, thanks to higher sales volume and a stronger US dollar.

It is worth noting that Nestlé Malaysia Bhd surged to an all-time high of RM102.40 on Dec 7, making it the highest priced stock on Bursa Malaysia. Despite the high price, the consumer stock has been on a steady climb this year. Based on its closing of RM100 as at Dec 15, it has gained 32% for the year.

Meanwhile, the top decliner among the super big caps was Petronas Gas Bhd, which has been on a downward trend since mid-2016, followed by Westports Holdings Bhd and YTL Corp Bhd.

Year to date, PetGas has depreciated 21% to RM16.24 as at Dec 15, from RM21.30 on Dec 30, 2016, amid concern over the new third-party access (TPA) framework expected to be implemented next year, which could impact its earnings going forward.

However, some have said the impact of the TPA — which allows third parties to access PetGas’ pipelines — could turn out to be neutral, with several analysts maintaining a “buy” call on the stock with target prices of up to RM22. ­ 

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