Still standing strong at 0.09. Not that bad.

Barakah also director sell like hell. Why you said still got hope. You are contradicting to your own statement. Don’t cheat newbie la.

Today close at 0.12?

Better switch to Alam.

Precisely. Mother 0.20, son 0.12 year end? Or end of oct?

Precisely. Accumulate more when it still weak.

Vol started to pick up this week in uptrend mode.

Son or mother? If mother, sell to me pls.

Hopeless? Nope, it goven opportunity for you to buy low.

Is 15 good buy?

Yup. 100% return from Maybank IB forecast.

September 2, 2019
Alam Maritim (AMRB MK)
Exited CDRC; a positive catalyst
BUY
Share Price
12m Price Target Previous Price Target
Company Description
[Prior:SELL]
Raised TP from MYR0.06 to MYR0.18; U/G to BUY
1H19 core loss was in line with our estimate. We raise FY20-21E earnings on improving prospects (higher OSV utilisation & underwater services ops). Also, Alam has exited the CDRC scheme, which is a positive catalyst that warrants a valuation re-rating. Our revised TP (+200%) is based on a higher 0.4x BV to reflect mean valuations post sub-USD100/bbl oil price vs. 0.1x BV previously (a debt default risk valuation).
OSV ops turnaround in 2Q19
2Q19 core net loss of MYR4m (-29% QoQ; -72% YoY) took its 1H19 core loss to MYR9m (-56% YoY), accounting for 49% of our FY estimate. The lower QoQ loss was driven mainly by the turnaround at its OSV division. Despite registering lower utilisation, it managed to reduce opex and reported MYR1m in EBIT (vs. LBIT of MYR2m in 2Q19). This was, however, offset by the continuous losses at its associate (-MYR2m) and underwater services division (-MYR2m), respectively.
Improving prospects
Its net gearing level was 12% at end-Jun 2019. We understand that Alam has recently exited the CDRC scheme, a positive re-rating catalyst, in our view. There is no debt haircut except for: (i) a 7-year extension on principal debt repayment up to 2024; and (ii) lower interest rates (5% now vs. 6-7%). This is a positive from a cashflow and working capital perspective. Operationally, it has reactivated 2 OSVs for charter in 3Q19 with 4-5 to go (currently docked), which will further strengthen its financials ahead. Notwithstanding that, its underwater services activities will also see improvement, driven by Vestigo’s EPCI USD59m contract.
Raise FY20-21 earnings; the worst is over
Our FY19 earnings are unchanged but we raise FY20-21 earnings to reflect improved OSV and underwater services ops. We now expect lower interest expense, higher OSV utilization of 70-71% (+1-2ppts) and lower opex (-8-12%) for FY20-21. All in, we expect Alam to break-even (ex-OSV assets impairment) in FY20 and return to profit in FY21.
An OSV service provider, operating largely in Malaysia
FYE Dec (MYR m)
Revenue
EBITDA
Core net profit
Core EPS (sen)
Core EPS growth (%)
Net DPS (sen)
Core P/E (x)
P/BV (x)
Net dividend yield (%) ROAE (%)
ROAA (%)
EV/EBITDA (x)
Net gearing (%) (incl perps) Consensus net profit
MKE vs. Consensus (%)
Liaw Thong Jung tjliaw@maybank-ib.com (603) 2297 8688
FY17A FY18A
161 93 (36) (72)
FY19E
172 33 (18) (2.0) nm 0.0 nm 0.2 0.0 (4.7) (2.9) 2.2 net cash (19) 0.7
FY20E
199 45 0 0.0 nm 0.0 nm 0.2 0.0 0.0 0.0 0.6 net cash (14) 100.1
FY21E
216 49 4 0.5 57,925.0 0.0 20.5 0.2 0.0 1.1 0.7 nm net cash (10) 141.7
(98) (10.6) nm 0.0 nm 0.3 0.0 (21.8) (10.8) nm 16.1 - -
(84) (9.1) nm 0.0 nm 0.2 0.0 (35.0) (11.3) nm 10.2 - -
Statistics
52w high/low (MYR)
3m avg turnover (USDm) Free float (%)
Issued shares (m) Market capitalisation
Major shareholders: SAR Venture Lembaga Tabung Haji Caprice Capital Intl.
Price Performance
0.240 0.220 0.200 0.180 0.160 0.140 0.120 0.100 0.080 0.060
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
Alam Maritim - (LHS, MYR)
Alam Maritim / Kuala Lumpur Composite Index - (RHS, %)
Absolute (%) Relative to index (%) Source: FactSet
-1M -3M -12M
0 6 (24) 1 8 (14)
MYR 0.10
MYR 0.18 (+89%) MYR 0.06
0.15/0.07 0.1 45.0 924 MYR87.8M USD21M
35.7% 10.1% 7.8%
210 190 170 150 130 110 90 70 50 30
THIS REPORT HAS BEEN PREPARED BY MAYBANK INVESTMENT BANK BERHAD
PP16832/01/2013 (031128)
SEE PAGE 7 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Malaysia Oil & Gas Shariah Compliant

Alam Maritim
Summary Results Table

Let it be la. As long as Alam is picking up....

Wow. That will be 100% gain if Maybank top price realized soon. Son 0.10?

Classified PN17 now?

Alam result getting better.....should buy more.

Back to 0.065 or lower?

QR out. Revenue increased a lot. On par with Y2018 even though 2 qtrs revenue only. Whole year will >200M revenue? And Y2019 profit 10M?

I wish. Tomorrow Q at 0.07 ok?

Yeah, every bid it drops also 95% buying Q....

Barakah follow Utusan.......

Tomorrow 0.02?

Too much is how much actually?

35cent? Are you in ketum?

Wah. No volume today. Operator waiting for QR?

Director/share holder also no want company share. Why you guy go to catch the ball? Why? If so good got prospect why he disposed? Force sell? Sure or not?

PN17 soon, how soon, next week? Next month? Tomorrow? So subjective your statement. Like no brain childish.

Is game over la. Even though it drop to 0.01 I also won’t buy. Exactly same trend like SAAG. No prospect as all.

Sometime I hate myself coz my prediction came true. So 0.025 hit, next 0.01??

QR soon.....positive or negative ?

100M only. Small potato la.

How huge? 2.6B??

Luckily you didn’t go to Alam. Else sure sinking the ship. You really no luck and deserve to lose big coz you fake Scomi PN17.

Redeemable conversion note? Can convert to mother share with 0.09.

Yup. MAjor share holder bully minorities share holder.

50:1, 0.03-0.04 is a bargain price?

Yup still got cash on hand 78M but notice of demand 80M++. You pay debt, no more cash flow and no white knight, how to survive? If didn’t pay debt, creditor will she Barakah bankruptcy. How arrrr? Do you think still got hope? No contract in future, no cash flow in future, no visibility in white knight (do think white knight so dumb will inject money now). Good luck comrades. Let’s go to Alam to recover all your loses.

Hahaha.............pity Odddddddddd.

BREM for long term.

Ppl still collect? Nope, that was fake buying, later buying Q accumulated which meet their amount, they will dump to you. Beware.

0.085 after 50:1? Hold? Why?

Pity you guys. If you guys listen to me and willing spent RM7 to buy the edge weekly. This won’t happen to you guys. Anyhow, lesson treat it as learn. My advise again, don’t touch even it touched 0.01. Not worth.

Since you have cut loss. Come to Alam to recover all your losses.

Those master always bark at me, hiding now?

Drop with high volume. Flash out weak holder? Kikikiki. Today close at 0.02?

Come on hardcore fans. What say you?

Why nobody wanna take my advise? See how now? Hold or disposed at 0.01? At 0.06 you guys don’t wanna disposed. Better keep until delisted?

Finally hit jackpot for somebody with hardcore support attitude.

Can ask Zakar Naik help what.

Jump Better?