"This will be significant as it should enable Marco Polo Marine to raise funds for its fleet expansion at a much higher multiple as Taiwan peers are trading at an average 20x+ P/E as compared to 10x in Singapore," says Seet in his Aug 26 note.
This should help boost Marco Polo Marine’s valuation from the current 8.4x FY2026, he adds.
"By listing in Taiwan, Marco Polo Marine is positioning PKRO at the epicentre of one of Asia’s most ambitious offshore wind development programs.
"Marco Polo Marine should also be able to raise funds at a better valuation and expand its fleet size at a faster pace. It should be able to secure loans at a lower rate which should lower its financing costs," reasons Seet.
Separately, the company secured a 3-year ship repair and maintenance agreement with Cyan Renewables that will help lift recurring revenue.
Also, it won a $5 million ship repair contract that will tap on Marco Polo Marine's new dry dock.
Year to date, Marco Polo Marine has already gained 38% but from Seet's perspective, this counter remains a laggard, given how it is still trading at a discount of between 30-40% to its RNAV.
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He expects the company's financial performance to pick up in 4QFY2025 with the coming FY2026 to be "stronger than 1HFY2025".
"We believe management will continue to pivot to serving offshore wind farms from O&G and FY2026 will be a much better year for Marco Polo Marine," says Seet.
Marco Polo Marine shares changed hands at 6.9 cents as at 10.20 am, up 2.99% thus far today.
