HwangDBS keeps 'buy' call on Alam Maritim

HwangDBS Vickers Research is positive on the latest long-term contract awarded by ExxonMobil Exploration and Production Malaysia Inc to Alam Maritim Resources Bhd.


The RM220.8 million contract is for the chartering of an accommodation
vessel and a Anchor Handling Tug. The contract comes with a three-year firm
period and an extension option of another two years.


"We are positive over this latest long-term contract which is estimated to
contribute RM44 million per annum, as it is likely to maintain its current high
fleet utilisation," the research firm said in a statement today.

HwangDBS Vickers Research is also maintaining its earnings forecast and
"buy" call on Alam Maritim Resources with RM1.00 target price, implying a 37 per cent upside potential.

It also said that financial year 2012 will be the company's year to showcase

its strong earnings visibility, driven by high vessel demand and more
installation jobs.

Meanwhile, HwangDBS is neutral on shipbuilder Boustead Heavy Industries
Corp Bhd's (BHIC) proposal, to dispose of its 60 per cent stake in PSC Tema
Shipyard Ltd to the government of Ghana, given the minimal earnings impact from
it.

"We understand that the yard is only breaking even while its total
investment in the yard (including acquisition cost) is estimated at RM8 million
since the joint venture agreement signed back in 1996.

"There is no mention on the potential amount to be recouped by BHIC but we
expect the amount to be similar to its total investment amount or higher pending
negotiations on the proposed disposal," it said. -- Bernama