Broker Name: CGS International
Date of Report: November 18, 2025
Excerpt from CGS International report.
Report Summary
- Mermaid Maritime (MMT) posted a strong 3Q25 net profit, mainly due to accelerated revenue recognition from a major decommissioning project in Thailand, resulting in a higher gross margin.
- The company’s orderbook decreased 7% quarter-on-quarter to US\$642m, with subsea IRM as the main contributor, but future earnings visibility depends on securing new orders soon.
- MMT’s net profit forecasts for FY25/26 were sharply cut due to lower order wins and margin pressures, and the valuation basis shifted to P/BV with a lower target price of S\$0.14.
- ESG efforts have reduced carbon intensity by 73% since 2019, though governance improvements are needed, particularly regarding board diversity.
- Key risks include limited order wins, order cancellations, and cost overruns, while potential catalysts are new contract wins and stronger margins.
- No dividends are forecasted, and the report reiterates an “Add” rating with 11% upside to the new target price.
- Peer comparisons show MMT trades at a lower valuation, reflecting its lower return on equity profile.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com
