ALAM (5115) : Affin Hwang maintains Buy on Alam Maritim
KUALA LUMPUR: Affin Hwang Research has maintained its Buy on Alam Maritim with a lower target price of RM1.05 due to its undemanding valuation of nine times CY15 EPS.
In a note on Friday, the research house said Alam’s share price has fallen by a steep 44% over the past three months due to the weakening global oil & gas capex outlook and weak market sentiment for oil & gas stocks.
"We believe that the selling is overdone. Alam is now trading below its book value of RM0.89. We believe the stabilisation of global crude oil price and consistent earnings delivery in 2015 will re-rate the stock," it said.
It added that Alam’s 9M14 core net profit fell by 23% on-year to RM52mil on weaker earnings from both its OSV and subsea/OIC divisions.
"The results are below consensus and our expectations. We have cut our 2014-16E EPS forecast by 18%-34% in view of the weakening regional oil & gas upstream capex outlook and the lack of major contract wins year-to-date," it said.
http://www.thestar.com.my
KUALA LUMPUR: Affin Hwang Research has maintained its Buy on Alam Maritim with a lower target price of RM1.05 due to its undemanding valuation of nine times CY15 EPS.
In a note on Friday, the research house said Alam’s share price has fallen by a steep 44% over the past three months due to the weakening global oil & gas capex outlook and weak market sentiment for oil & gas stocks.
"We believe that the selling is overdone. Alam is now trading below its book value of RM0.89. We believe the stabilisation of global crude oil price and consistent earnings delivery in 2015 will re-rate the stock," it said.
It added that Alam’s 9M14 core net profit fell by 23% on-year to RM52mil on weaker earnings from both its OSV and subsea/OIC divisions.
"The results are below consensus and our expectations. We have cut our 2014-16E EPS forecast by 18%-34% in view of the weakening regional oil & gas upstream capex outlook and the lack of major contract wins year-to-date," it said.
http://www.thestar.com.my
