AmResearch maintain 'buy' on Alam Maritim
AmResearch has maintained a 'buy' call on Alam Maritim Resources Bhd with an unchanged fair value of RM2.45 per share.
The research house said Alam Maritim secured a charter contract for an anchor handling tug supply (AHTS) vessel valued at RM45 million for three years beginning this month, and an option to extend for another year.
"Based on an AHTS with an engine capacity of 5,000 brake horse power (bhp), the charter rate of US$1.96/bhp appears low compared to the over US$2.00/bhp contract, secured earlier in the year as the vessel employed will be one of Alam Maritim’s older wholly-owned ships.
"Hence, we continue to be positive on charter rates for the AHTS
market segment, underpinned by a need for additional 15-20 vessels this year in Malaysia," it said in a research note.
AmResearch also noted that Alam Maritim hoped to secure contracts worth between RM1.2 billion and RM1.5 billion for underwater services, which were earlier extended to financially strapped Offshoreworks Group.
The company may enter into a joint venture with Pacific Radius to acquire two diving support vessels to service its subsea inspection, repair and maintenance contracts, which could easily double prospective net margins between 10 per cent and 15 per cent currently.
"Additionally, the group hopes to secure part of the concession for the Pan-Malaysian transport and installation umbrella contract, worth between RM3 billion and RM5 billion, annually, which may be open for bidding later this year," it added.-- Bernama