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



Kenanga Research has revised downwards its net profit forecast for Alam Maritim Resources Bhd by six per cent for financial year 2010 to RM105 million from RM111.5 million and by four per cent for financial year 2011 to RM108 million from RM112 million.

The revised target was factored by softer earnings from offshore marine vessels and lower contribution from underwater division due to the idling delivery time of the pipe-lay barge expected to be in September 2010, it said in a research note today.

Upon revising Alam Maritim's net profit forecast, Kenanga Research also downgraded its recommendation for Alam Maritim shares to "hold" with a revised target price of RM1.06, saying that it is being cautious at this juncture until contracts are secured.

The research house, however, remained positive on Alam Maritim's prospects in view of upcoming new builds (anchor handling tug and supply vessel and pipe-lay barge).

Alam Maritim's first half financial year 2010 recorded a net profit of RM38.1 million, a 25.6 per cent drop from the previous year net profit of RM51.2 million on declining revenue of RM134.3 million from RM152 million previously.

The net profit recorded was 34 per cent lower than Kenanga Research and consensus expectations with quarter-on-quarter net profit declining by 24.5 per cent to RM16.4 million from RM21.7 million in the preceding year, despite the
marginal increase of revenue. -- Bernama