KUALA LUMPUR: OSK Research is maintaining its Buy on Alam Maritim, with an unchanged price of RM1.99 based on the existing PER of 12x FY10 earnings.

It said on Friday, July 23 that judging from the uptrend in its share price, having moved up from its recent low of RM1.05 on May 26, it did not expect a material negative financial impact on the company arising from the court case.

“Going forward, we continue to like the company’s sound strategy in penetrating new businesses (such as its pipe-laying barge) and new geographical markets (Middle East and India), and its solid financial strategy (using the JV option to finance its new vessels), which will not only safeguard its gearing but also instill investor confidence in the company,” it said.

Alam Maritim announced its two vessels -- MV Setia Aman and Setia Ulung – were released after a court order. The release was made after MLC Barging Pte Ltd had discontinued the main admiralty suits in rem.