KUALA LUMPUR (Nov 10): MISC Bhd saw its share price rose to a high of RM7.53 this morning after investors are excited by the company’s third quarter financial results for financial year 2014 released last Friday.

The shipping giant recorded a 15% year-on-year increase in net profits to RM457.3 million while its 9M14 net profit grew 30% year-on-year to RM1.28 billion.

At 10.52 am, the counter rose 10 sen or 1.36% to settle at RM7.49 after some 740,000 shares changed hands.

AllianceDBS Research maintained a ‘buy’ call on the stock with a target price of RM8.05 after the 3Q14 results were said to be “in line” with the research house’s expectation.

Analyst from AllianceDBS Research said in a research note today while no dividend was declared by MISC for the quarter,  the company could offer a “surprise on the upside” in terms of dividends.

“Management has hinted at a stronger dividend per share (DPS) for Y14, if fourth quarter earnings continue to be strong, which is a likely scenario. Our FY14F DPS forecast is 10 sen, but this could surprise on the upside, given the improving balance sheet position,” it said.

Meanwhile, CIMB Research said that at 73% of house and 71% of consensus’ full-year expectations, MISC's 9M14 core earnings were in line.

The researc house said petroleum and chemical tanker losses look poised to narrow further in 4Q14 as MISC heads into a seasonally-strong quarter with the benefit of lower bunker prices.

“FPSO Cendor will also contribute to profits beginning 4Q14. We make minor changes to our EPS estimates and keep our SOP-based target price.

“We maintain Add, with rerating catalysts that include improving relations with Petronas and brighter petroleum tanker prospects,”it said.