Marco Polo Marine’s current CSOV generates about US$50,000 ($64,951.75) to US$60,000 per day or US$17.5 million in revenue based on a utilisation rate of 80%. This could also potentially bring a net profit after tax (NPAT) of US$5 million to US$6 million annually, which is “quite significant”, says Seet.
On Sept 24, Marco Polo Marine also announced that it will expand its fleet with anchor handling tug supply (AHTS) vessels, which will be added to its fleet in 2026.
“We expect these new vessels to significantly contribute to Marco Polo Marine’s patmi from FY2027 to FY2030 when ready,” Seet writes in his Oct 24 report, but adds that he will wait for confirmation before incorporating it into his forecasts.
The listing of Marco Polo Marine’s subsidiary PKRO in Taiwan will also boost the former’s valuations as its Taiwan-listed peers are trading at P/Es of over 20 times.
See also: Beansprout initiates coverage on CSE Global at ‘buy’ with target price of $1.40
“By listing in Taiwan, Marco Polo Marine is positioning PKRO at the epicentre of one of Asia’s most ambitious offshore wind development programmes,” says Seet.
“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 interest rate, which should lower its financing costs,” it adds.
Overall, Marco Polo Marine’s financial performance is expected to improve in 4QFY2025 ended Sept 30, with its FY2026 earnings projected to outperform the company’s 1HFY2025 performance.
See also: DBS upgrades ‘hidden gem’ Nam Cheong target price to $1.60
Seet’s new target price is based on a higher FY2026 P/E of 13.5 times from 11 times previously.
As at 10.18am, shares in Marco Polo Marine are trading 0.2 cents higher or 2.15% up at 9.5 cents.
