Alam Maritim most active in early trade

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KUALA LUMPUR (Nov 20): Alam Maritim Resources Bhd’s shares emerged as the most actively traded stock on Bursa Malaysia this morning, hours after the marine transportation company posted its better-than-expected third quarter results.

At 9.32 am, the stock rose two sen to 12 sen with 51.53 million shares changing hands.

In the financial year ended Sept 30, 2019, Alam Maritim returned to the black after recording a net profit of RM535,000 against a net loss of RM21.38 million in the same period last year, while revenue surged to RM114.59 million from RM21.41 million previously.

The better results were attributed to higher revenue from Offshore Support Vessels (OSV) segment on the back of an increase in charter contracts, the company said in its filing to Bursa Malaysia yesterday.

Following the better Q3, Maybank IB Research upgraded its prospects on Alam Maritim.

“We reduced our forecast financial year 2019 core net loss by 14 per cent to RM16 million from RM18 million post the 3Q19 results,” it said in a note today.

The research house has maintained its ‘buy’ rating recommendation with an unchanged target price of 18 sen.