KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [ ] share rose in early trade on Wednesday, Sept 21 after its unit secured a RM22.10 million contract to supply a vessel to a local oil and gas company.

At 9.10am, Alam gained 1.5 sen to 80.5 sen with 2,000 shares done.

The company said on Sept 20 that the contract was for 28 months and it started on July 24.

ECM Libra Research in a note Sept 21 maintained its Buy call on Alam Maritim, and said that there had been a significant pickup in demand for offshore support vessel in Malaysia with increased drilling activity and redevelopment projects, adding that Alam was the obvious beneficiary.

“Our target price of RM1.11 is based on mid CY12 P/E of 11x, a historical average valuation.

“The group now has a solid orderbook of roughly RM700 million that will take them back to the black in 2H11 and turn in solid profits in FY12,” it said.