Thursday, October 28, 2010

AmResearch reaffirms Buy on Sealink

KUALA LUMPUR: AmResearch reaffirms its BUY rating on SEALINK INTERNATIONAL BHD [] with an unchanged fair value at 86 sen a share based on a PE target of 7.0 times.

Sealink announced on Wednesday, Oct 27 the sale of two supply vessels worth RM67 million, valued at RM33.5 million each, which is at par to the current going rate.

???We understand these vessels are still under CONSTRUCTION [] and should be ready for delivery by year-end. We are keeping our estimates as we have assumed five to six vessels to be sold in our earnings model,??? AmResearch said on Thursday.

???We gather that the group is looking to finalise the sale of two more vessels before the year closes out. Management guided that a RM55 million to RM60 million earnings range is within reach. Management also guided of the possibility of being awarded a long-term charter contract by year-end,??? it said.

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