Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Research House: OSK



OSK Research has maintained a "buy" recommendation for Alam Maritim Resources Bhd although it downgraded the offshore maritime transportation service provider's target price to RM1.63 from RM1.99 previously.

"We like the company's sound strategy in penetrating new businesses and new geographical markets (Middle East and India) as well as financial strategy using the joint venture option, which entails both parties sharing the risks and rewards," OSK said in a research note today.

OSK downgraded Alam Maritim's financial year 2010-2011 earnings projections by between 19 per cent and 22 per cent.

"Our downgrade is in line with the poorer-than-expected performance in second-quarter 2010, a sluggish outlook for the vessel market in terms of charter rates and new contract awards, and weakening of US dollar against the ringgit," OSK said.

Alam Maritim's pre-tax profit for the second quarter ended June 30, 2010, fell to RM17.91 million from RM33.49 million in the corresponding quarter last year while revenue also declined to RM67.42 million from RM80.67 million previously. --BERNAMA