Maintain HOLD with lower MYR0.60 TP. 1Q12 results disappointed, prompting a 23-27% cut in our FY12-13 earnings estimates and a 34% cut in TP to MYR0.60. With the share price down 32% YTD, Alam now trades at 0.8x PBV (below -1SD of its historical mean), suggesting an opportunity to buy at cheap valuations. But, the OSV outlook remains muted, with a flattish earnings outlook over the next three years. Our TP is pegged at an 8x FY13 PER (9x previously) as we cut target earnings multiple by a notch pricing in further earnings downside risk.

Click here for full report

Source: Maybank Research - 23 May 2012