KUALA LUMPUR (Nov 22): CIMB Equities Research is maintaining a Buy recommendation on Alam Maritim but a a lower target price of RM1.20.
It said on Tuesday that Alam Maritim stayed on the recovery path in 3Q11, with a net profit of RM13 million that took nine-month bottomline to RM13.6 million.
“However, it was way below expectations, at only 18% of our full-year forecast and 25% of consensus estimates. We had overestimated contributions from the pipe installation business,” it said.
CIMB Research has slashed its FY11 forecast by 64%. It also scaled back the FY12-13 forecasts by 14%-15% and target price reduced from RM1.50 to RM1.20.
“Although FY11 is a washout year, Alam remains a BUY as the pipe installation business could still surprise on the upside next year,” it said.
It said on Tuesday that Alam Maritim stayed on the recovery path in 3Q11, with a net profit of RM13 million that took nine-month bottomline to RM13.6 million.
“However, it was way below expectations, at only 18% of our full-year forecast and 25% of consensus estimates. We had overestimated contributions from the pipe installation business,” it said.
CIMB Research has slashed its FY11 forecast by 64%. It also scaled back the FY12-13 forecasts by 14%-15% and target price reduced from RM1.50 to RM1.20.
“Although FY11 is a washout year, Alam remains a BUY as the pipe installation business could still surprise on the upside next year,” it said.
