PETALING JAYA: OM Holdings Ltd
(OMH) could see a meaningful earnings rebound in 2024 with the reversal of the US interest rate cycle, boosting demand for its products, says UOB Kay Hian (UOBKH) Research.
The Australian-listed OMH has smelting plants in Sarawak and is involved in manganese and silicon smelting and trading of raw ores and processed ferroalloys.
According to the research firm, OMH is “set to achieve a multi-year profit bonanza with expanded capacity, as hydro-powered smelters’ cost advantage has significantly widened versus global competitors”.
It noted that favourable structural supply-demand dynamics may have yet to be fully reflected in OMH’s share price as rising global energy prices have widened the cost differential gap between OMH and other fossil-fuel dependent smelters.
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