Nvidia CEO Jensen Huang expressed confidence that global collaboration in science and technology will persist, even amid potential tighter export controls from the incoming Trump administration. Huang on Global Cooperation Despite the Trump administration’s previous restrictions on exporting US technology to China, Huang believes international collaboration remains essential. “Open science and global cooperation across math and science have been the foundation of societal and scientific advancements for a very long time,” Huang stated during a media session in Hong Kong. He emphasized Nvidia's commitment to balancing compliance with laws and policies while continuing to advance technology and serve customers globally. The Age of AI During a speech at the Hong Kong University of Science and Technology (HKUST) , Huang declared, “The age of AI has started — a new computing era that will impact every industry and every field of science.” Highlighting Nvidia’s innovations, he describe
Retain HOLD with a target price (TP) of RM2.62
Press Metal Bhd
(April 19, RM2.79)
Maintain hold with a fair value of RM2.62: The global demand for aluminium is expected to grow modestly at 5% annually from financial year 2017 (FY17) to forecasted FY19 (FY19F), largely attributed to the transportation and construction segments which account for half of the global primary demand, while supply is expected to remain flat at 60 million tonnes. Currently, demand for aluminium stands at 59 million tonnes with supply at 59 million tonnes. The slow supply growth is mainly due to the curb on aluminium production in China where the government has issued a policy draft to cut down production during the winter season.
The curb is to tackle pollution which worsens in winter. Experts reckoned that if the China policy kicks in, they forecast a reduction of 1.3 million tonnes of aluminium production (4% of total production in China).
The positive outlook for aluminium is a boost to Press Metal Bhd’s (PMB) earnings outlook. Earnings is expected to improve by 47%/28%/27% respectively from FY17 to FY19F mainly driven by: (i) Ramped up annual production to full capacity in the fourth quarter of 2016 to 760 million tonnes annually from 705 million tonnes previously, and 120 million tonnes annually downstream at 75% utilisation rate.
We forecast higher average aluminium prices per tonne realised at US$1,785 (RM7,854), US$1,910 and US$2,100, up by 5%/7%/10% for FY17 to FY19F respectively, due to strong demand from the construction and transportation segments globally and the aluminium production cut in China.
(ii) The low production cost, helped by the competitive electricity tariff from hydroelectric power. Cost savings in logistics from the belt conveyer system in the Samalaju Port, which will be ready by the second half of 2017, will give PMB’s savings of US$50 to US$70 per tonne. Together with the low effective corporate tax rate mainly due to tax exemptions from its pioneer status and investment tax incentives, these make PMB the lowest cost aluminium producer in the region. — AmInvestment Bank Research, April 19
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