Report Summary

• Maybank maintains a BUY rating on Marco Polo Marine (MPM), raising its target price to SGD0.11 due to strong expected earnings growth from fleet expansion and new vessel deliveries.
• MPM is constructing a second Commissioning Service Operation Vessel (CSOV) with delivery planned for 4Q28, and acquiring two Anchor Handling Tug Supply (AHTS) vessels, boosting its fleet size and positioning it to benefit from rising demand in both offshore wind and oil & gas sectors.
• The new vessels, especially the CSOV, are forecast to increase MPM’s earnings per share by 30-35% from FY28, while a potential Taiwan IPO of its subsidiary PKRO could further boost valuations and facilitate faster fleet expansion at lower financing costs.
• MPM remains well-capitalized (net cash position), with rising profitability, strong cash flow, and expanding dividends expected as it leverages booming demand for marine logistics in Southeast Asia and the renewable sector.
• Key risks include a global economic slowdown, oil price volatility, and potential geopolitical tensions impacting operations.