Broker: CGS International
Date of Report: May 16, 2026
Excerpt from CGS International report.
Report Summary: Marco Polo Marine (MPM SP)
- Action: Add (Buy call maintained)
- Target Price: S\$0.21
- Ticker: MPM SP
- Key Idea: Marco Polo Marine plans to inject its Batam shipyard into Fuji Offset Plates Manufacturing via a S\$139m reverse takeover, valuing the yard at 2.2x P/BV versus peers’ 1.2x. MPM will hold up to 76.8% of the enlarged entity post-transaction.
- Strategic Rationale: The deal unlocks capital market access, allowing potential fundraising to scale yard capabilities and renew fleet. Earnings dilution is expected in the near term, but improved access to capital could drive stronger earnings growth from FY27-28.
- Highlights: Earnings forecasts for FY27-28 raised; target price increased to S\$0.21 on higher 19x FY27F P/E, reflecting a 50% premium to peers. Key catalysts include newbuild orders, charter contracts, and higher utilisation.
- Implications: Investors should focus on MPM’s enhanced capital access and potential for earnings growth from FY27 onwards due to the reverse takeover structure. Downside risks include lower utilisation or deferred repair work.
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
