A quiet 2011 end, looking to a better 2012. Alam will announce its 4Q11 results in the next few days, and we expect earnings to be largely within our expectations. While 2011 was a lacklustre year largely due to contract delays in the OIC segment and lower vessel utilisation, 2012 earnings should be stronger as existing OIC contract wins will be fully recognised this year. OSV will be stronger too, as it will enjoy higher utilisation rates throughout the year. Nevertheless, Alam's net gearing remains our main concern, and is its Achilles heel, in our view. Alam therefore remains a Hold with a RM0.85 target price (9x 2012 EPS).

Maybank Research 21 Feb 2012

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