Friday, June 4, 2010

Company watch : Alam Maritim

My this weekend reading and assignment.

(Business Times) MAYBANK Investment Bank Research maintained its "Buy" call on Alam Maritim Resources Bhd (5115) even though its first quarter results were weaker than expected.

In its research note, it also maintained its earnings forecasts as it expects more earnings to flow in during the remaining quarters.

The company's first quarter recurring net profit was 12 per cent lower at RM21 million, or 17 per cent of its full year forecast, mainly due to lower operating activities at its offshore marine charter and underwater services divisions.

Earnings also took a hit from a currency translation loss which accounted for 6 per cent of group net profit.

"We are keeping our earnings forecasts unchanged, expecting stronger quarters ahead as activities pick up from the second quarter. Its 50 per cent-owned pipelay barge, delivered in March 2010, is expecting commissioning by July 2010. The vessel has no firm contract but we understand that charter interest for the vessel has been encouraging," it said.

The research house expects Alam Maritim to deliver a 66 per cent net profit growth in 2010, including extraordinary gains.

Read more: Alam Maritim: Buy, target price RM2.40

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