NOW is 0.725.
You dare to buy?????
Alam Maritim expected to pay dividends for FY12, says M&A Securities
Business & Markets 2012
Written by theedgemalaysia.com
Thursday, 03 January 2013 07:52
KUALA LUMPUR (Jan 3): ALAM MARITIM RESOURCES BHD [] is grossly undervalued and is expected it to pay dividends for FY12 as it is expected to make a big jump in profit, according to M&A Securities.
Alam Maritim has the potential of being awarded another RM472.7 million out of RM2 billion bids based on its historical success rate, said the research house.
Alam Maritim is bidding for RM2 billion contract to strengthen its offshore support vessels (OSVs) and offshore installation and CONSTRUCTION [] (OIC) segments this year.
In a note Jan 2, the research house said that Alam Maritim had secured some portion of the tender results in the last quarter of 2012 worth about RM109.2 million.
It expects Alam maritim has the potential of being awarded another RM472.7 million out of RM2.0 billion bids based on its historical success rate of between 20-25%.
M&A Securities said this may boost Alam Maritim’s current orderbook of RM800 million by 59% to RM1.2 billion throughout 2013 which may improve Alam Maritim profit margin to 14% from 4% in FY11.
“We maintain our Buy call on Alam Maritim and Fair Value at 96 sen by pegging to its EPSFY13F of 8 sen to P/E multiple of 12x.
“We feel Alam Maritim is grossly undervalued and we are also expecting it to pay dividends for FY12 as it is expected to make a big jump in profit,” it said.