In the 9MFY2025, the CSOV and three newly purchased crew transfer vessels contributed $11 million out of the total revenue of $54 million.
"We expect Marco Polo Marine’s growth to accelerate, as its CSOV and three new CTVs will contribute a full year’s revenue from FY26 onwards," says Yeo in his Sept 16 note.
In addition, the company's fourth dry dock is set to commence operations in the current 4QFY2025 and is seen to contribute to a full year’s revenue as it ramps up utilisation over FY2026. "As such, we anticipate growth to accelerate in FY2026," says Yeo.
Yeo is keeping his revenue projections for FY2026 and FY2027 but he has raised his FY206 earnings by 12% and FY2027 by 13% after factoring in stronger margins at the current run rate, to account for stronger-than-expected CSOV margins and higher utilisation of vessels.
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Yeo notes that Marco Polo Marine's share price has re-rated from 6x FY2025 PE to 12x along with the broader market since his last update, on optimism over positive fund flows.
In view of the rerating, he now values the stock at 11x FY2026 PE from 9x FY2026, resulting in a higher 8.5 cents, from 7.6 cents.
Yeo qualifies that his forecasts and TP are premised on improved charter rates, as well as stronger utilisation rates.
"We believe any underperformance in these aspects represents downside risks to our earnings estimates and target price," he adds.
Marco Polo Marine shares trade at 7.4 cents as at 9.22 am, unchanged for thus far today but up 48% year to date.
