“It is also good to have a rotational play with laggards that are currently undervalued, such as vessel operators,” adds Liaw, who has a “buy” call on Alam Maritim Resources Bhd and Icon Offshore Bhd in the segment.
Pak Mael duduk di Jalan Gasing Anak nya yang bongsu bernama Mabel Dengan untung window dressing Bukan saja pagar, satu rumah perabut kita tukar ke stainless steel
Alam already up by 30%, and the recovery is really good?...last QR performance due to revenue from OSV business ., and at the same time they still selling OSV assets to get cash.
Some people saying Alam Maritim's share price would rally akin to Bumi Armada, whom has rallied 200% within 5 months after Bumi Armada started turning around in 1Q19, which the results announced end of May 2019.
Some people started worrying about seasonal factor for O&G sector in 4Q19. As for Alam, it has already turned around and "IF" it happens, it should has already been priced in recent consolidation in the share price. It would not be a major correction because seasonal factor is not an indication for earnings prospect. Therefore, a recent healthy correction or consolidation in Alam's share price provides great great opportunity to accumulate at current cheap valuation and cheapest in town!
At 13sen on 26th November 2019, Alam Maritim has still been trading at 0.3x PBV only! Still cheaper and cheapest in the industry.
Compare against its direct competitor in OSV sector, Alam still lagging behind. Ignore the P/E ratio due to distortion (because O&G sector just started turning around in the 3Q19 results).
Perdana: 0.64x PBV (while business is heavily realiance on Dayang) Icon: 1.36x PBV (trading at premium despite still loss making)
Should Alam Maritim be traded at 23sen, it would just imply 0.53x PBV. Still cheap though!
Compare against large-to-small caps upstream O&G, ignore the P/E ratio due to distortion (because O&G sector just started turning around in the 3Q19 results):
By Subsea, drilling rigs and FPSO: Velesto: 1.12x PBV Sapnrg: 0.3x PBV (still loss making!!!) Bumi Armada: 0.83x PBV Yinson: 4.18x PBV Hibiscus: 1.11x PBV
By fabrication, pipelines and maintenance: Dayang: 1.44x PBV Wah Seong: 0.94x PBV Petra Energy: 1.35x PBV Deleum: 1.18x PBV
Alam Maritim achieved a record high 3QFY19 revenue of RM114.6 million since 3QFY14 of RM127.9 million when the oil price was above USD100/bbl! Its bottomline also started turning around with net profit of RM535k after so many quarters of loss! This could be the beginning of new era of Alam Maritim.
The OSV market is improving, which operationally, OSV utilization is picking up.
A rise in daily charter rate (DCR) akin to the JU rigs business (Velesto) is a re-rating catalyst, as the majority of its term charters are currently locked in at bottom-cycle DCRs.
Maybank-IB has BUY call on Alam Maritim with target price of 18sen at O.4x PBV. Again At 23sen, it would imply 0.53x PBV! Still cheap though and cheapest among the O&G stock in town!
Mabel kalau awak rajin, jadi promoter sini. Ku dulu pernah jadi promoter hisbiscus naik juga 1.10, sekarang ku dah mati kutu dengan O&G industry hihihi
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Mabel
24,457 posts
Posted by Mabel > 2019-11-29 09:54 | Report Abuse
Sharks is collecting.
They will deposes before Xmas..