Tuesday, November 22, 2011

Alam Maritim edges up on firmer 3Q earnings

KUALA LUMPUR (Nov 22): ALAM MARITIM RESOURCES BHD [] shares edged up on Tuesday after its third quarter net profit rose 50.5% to RM13.33 million from RM8.92 million a year ago, underpinned by its offshore support vessels segment.

At 9.20am, Alam rose half a sen to 75.5 sen with 55,400 shares traded.

The company said on Nov 21 that its revenue increased by 71.3% to RM116.03 million from RM67.69 million while earnings per share were 1.70 sen compared with 1.20 sen.

Maybank IB Research said Alam's 3Q11 quarter-on-quarter earnings recovery was expected, consistent with its results preview.

The research house said that going forward, Alam's 4Q results were expected to be flattish sequentially on seasonal weakness and full-year earnings should meet its RM28 million estimate.

'While we expect continued improvement in the OSV and OIC divisions, its high gearing level is a constraint to growth and a restriction to a re-rating.

'Alam remains a Hold with an unchanged target price of 85 sen (9x 2012 EPS),' it said in a note Nov 22.

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