PublicInvest sees nearly 40pct upside for MSC
KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) maintained its "Outperform" call on Malaysia Smelting Corp Bhd (MSC) with an unchanged target price of RM3.10, implying a potential upside of nearly 40 per cent from the stock's current price of RM2.22.
PublicInvest has retained its Outperform rating for Malaysia Smelting Corp Bhd (MSC) with a target price of RM3.10, indicating a potential 40% upside from the current stock price of RM2.22. The investment bank highlighted MSC's proficiency in mineral mining, which could enable it to capitalize on opportunities in Malaysia's emerging rare earth industry.
Currently, tin prices sit between US$49,000 and US$57,000 per tonne on the London Metal Exchange, supported by supply constraints in Myanmar and Indonesia as well as rising demand from the clean energy and digital transitions. In the second quarter of FY26, MSC's net profit surged over two-fold, reaching RM34 million, thanks to higher tin prices, increased sales, and improved operational efficiency.
Revenue rose by 68.2% year-on-year to RM637.3 million, partly due to a 44.7% boost in refined tin sales volume and a 49.1% increase in the average realised tin price to RM208,400 per metric tonne. MSC's tin mining segment continued to be the primary earnings driver, with pre-tax profit climbing to RM59.1 million, while the tin smelting segment turned a profit for the first time in a year, posting a RM3.8 million pre-tax profit.
For the first half of FY26, MSC managed to meet 56.7% of PublicInvest's full-year earnings forecast and 47.5% of consensus estimates.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
