Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Research House: CIMB
KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] shares rose on Tuesday, June 14 after it secured a contract worth RM52 million from Samsung Engineering Malaysia Sdn Bhd to supply two units of single point mooring buoy for Sabah Oil and Gas Terminal project.
At 9.15am, Alam was up three sen to RM1.11 with 343,100 shares done.
Its unit Alam Maritim (M) Sdn Bhd had received the purchase order from Samsung Engineering Malaysia.
Alam said the contract was expected to start immediately with delivery by the first quarter of the financial year ending Dec 31, 2012.
It said the contract was not renewable. Alam said the contract was expected to contribute positively to its earnings for the financial years ending Dec 31, 2011 and 2012.
CIMB Research maintained its Buy call on Alam and its target price of RM1.40.
'We maintain our EPS forecasts which already factor in the SOGT package, which we assume is worth US$50 million. Also intact is our target price of RM1.40 as we continue to value Alam at a 20% discount to our target market P/E of 14.5 times.
'We advise investors to Buy Alam given the potential share price catalysts of 1) the SOGT contract announcement, 2) consensus upgrades, and 3) more pipe installation ventures,' it said in a note June 14.
Company Name: ALAM MARITIM RESOURCES BHD
Research House: CIMB
KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] shares rose on Tuesday, June 14 after it secured a contract worth RM52 million from Samsung Engineering Malaysia Sdn Bhd to supply two units of single point mooring buoy for Sabah Oil and Gas Terminal project.
At 9.15am, Alam was up three sen to RM1.11 with 343,100 shares done.
Its unit Alam Maritim (M) Sdn Bhd had received the purchase order from Samsung Engineering Malaysia.
Alam said the contract was expected to start immediately with delivery by the first quarter of the financial year ending Dec 31, 2012.
It said the contract was not renewable. Alam said the contract was expected to contribute positively to its earnings for the financial years ending Dec 31, 2011 and 2012.
CIMB Research maintained its Buy call on Alam and its target price of RM1.40.
'We maintain our EPS forecasts which already factor in the SOGT package, which we assume is worth US$50 million. Also intact is our target price of RM1.40 as we continue to value Alam at a 20% discount to our target market P/E of 14.5 times.
'We advise investors to Buy Alam given the potential share price catalysts of 1) the SOGT contract announcement, 2) consensus upgrades, and 3) more pipe installation ventures,' it said in a note June 14.
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