Stabilised but still unexciting  Shariah-compliant
 
Opaque earnings trend till next year. We cut 2011 earnings by 27% in anticipation of a weaker 2H performance. While 2011 results will disappoint, we expect a stronger 2012-13. We are encouraged by Alam's efforts to grow its operations beyond OSVs to pipelay vessels for growth. With majority of cost front-loaded in 2011, we expect stronger contribution from the 1MAS going forward. As such, we are keeping our 2012-13 earnings forecasts unchanged. Alam remains a Hold with an unchanged target price of RM0.85 (9x 2012 EPS).


Maybank research (21 November 2011)

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