Fistein
12-24

$MarcoPolo Marine(5LY.SI)$ 0.30 Target Price

MarcoPolo Marine's (5LY.SI) upcoming growth is driven by strategic fleet expansion, entry into offshore wind energy, and major contract wins, supported by improving financial metrics and bullish analyst sentiment.

Key Growth Drivers:

1). SG$198 Million Research Vessel Contract

Subsidiary Marco Polo Shipyard secured a SG$198 million contract to build an advanced oceanographic vessel for Taiwan's National Academy of Marine Research, with delivery expected by year 2028.

The project is fully self-financed, indicating strong liquidity and operational confidence.

2). Fleet Expansion & Offshore Wind Focus

Added 2 new AHTS vessels (total fleet: 21) for SG$34 million, targeting oil/gas and renewable sectors.

Partnered with Norway's Salt Ship Design to construct a Commissioning Service Operation Vessel (CSOV Plus) by 2026, positioning the company in the fast-growing offshore wind market.

3). Robust Shipyard Utilization & Order Backlog

Shipyard operations reported high utilization rates, driven by repair demand and newbuild projects

Ship-chartering order book stood at SG$100 million as of June 2025, securing near-term revenue for year 2026.

4). Analyst Upgrades & Financial Resilience

Maybank Securities and CGS International raised price targets to SG$0.3 and SG$0.4 respectively, citing earnings potential from fleet upgrades and offshore wind projects.

Net profit margin improved to 20.20% in 2025Q2 (vs. 17.90% in 2024Q2), reflecting operational efficiency.

5). Strategic Share Issuances

Issued 927,000 shares under an employee option scheme, aligning stakeholder incentives without significant debt, instill confidence for exponential growth in offshore and renewable energy sector.

Marco Polo Marine Could Win More Shipbuilding Contracts -- Market Talk

0242 GMT - Marco Polo Marine appears to be in a "rapid growth phase" with the potential to win more shipbuilding contracts, Maybank Securities' Jarick Seet says in a note. The Singapore-listed shipbuilder secured a contract to build an oceanographic research vessel over four years, which would add around S$50 million in shipbuilding revenue and S$4 million in profit--both per annum, the analyst says, adding that the new vessel contracts are likely to boost Marco Polo's earnings per share. Seet raises his forecasts for FY 2026 and FY 2027 net profit by 14.9% and 14.2%, respectively. Maybank Securities raises its target price to S$0.20 from S$0.13 and maintains a buy rating on the stock. Shares gain 5.1% to S$0.166.
Marco Polo Marine Could Win More Shipbuilding Contracts -- Market Talk

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  • sehchong
    ·12-24
    you again raise the TP given by the research house...
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