Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research maintains a Buy on Alam Maritim at RM1.80 with a target price of RM2.900 based on a PER of 12x FY10 earnings.
It said on Monday, March 29 it believes more vessel contract awards would be coming up in 2H10 to support the installation of pipelines and facilities work in Malaysia.
"With regard to this, we believe Alam would be a preferred candidate as it owns an all-Malaysian flagged fleet of vessels that are mostly new (at less than five years old) and which have a lower possibility of breaking down.
"Finally, the bulk of its fleet size is 5,000 brake horse power, which is not only easier and cheaper to operate but also suitable for use in Malaysian waters," it said.
Last Friday, Alam announced that its 100%-subsidiary, Alam Maritim (M) Sdn Bhd was awarded two long-term vessel contracts by established oil majors to provide; 1) one accommodation vessel for RM40 million, and 2) one accommodation workbarge for RM43.2 million.
Both contracts are expected to start work immediately. The first contract is for a primary period of three years, with 2 extension options of 1 year each, while the second is for a primary period of 13 months, with two extension options of one year each.
Company Name: ALAM MARITIM RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research maintains a Buy on Alam Maritim at RM1.80 with a target price of RM2.900 based on a PER of 12x FY10 earnings.
It said on Monday, March 29 it believes more vessel contract awards would be coming up in 2H10 to support the installation of pipelines and facilities work in Malaysia.
"With regard to this, we believe Alam would be a preferred candidate as it owns an all-Malaysian flagged fleet of vessels that are mostly new (at less than five years old) and which have a lower possibility of breaking down.
"Finally, the bulk of its fleet size is 5,000 brake horse power, which is not only easier and cheaper to operate but also suitable for use in Malaysian waters," it said.
Last Friday, Alam announced that its 100%-subsidiary, Alam Maritim (M) Sdn Bhd was awarded two long-term vessel contracts by established oil majors to provide; 1) one accommodation vessel for RM40 million, and 2) one accommodation workbarge for RM43.2 million.
Both contracts are expected to start work immediately. The first contract is for a primary period of three years, with 2 extension options of 1 year each, while the second is for a primary period of 13 months, with two extension options of one year each.
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