Broker Name: CGS International
Date of Report: December 1, 2025
Excerpt from CGS International report.
Report Summary
- Marco Polo Marine (MPM) delivered FY9/25 results with core PATMI ahead of expectations due to stronger gross margins and tighter operating expense control, despite flat revenue growth.
- Growth in FY26F-28F is expected from full contributions of a new CSOV (Commissioning, Service, Operation Vessel), a new drydock, and additional vessel deployments, with net profit forecast to grow at a 23% CAGR.
- Key catalysts for further stock re-rating include new charter wins, the delivery of newbuilds, and the planned IPO of its Taiwan unit.
- ESG initiatives include hybrid energy systems on CSOVs and green ship recycling, but energy use and emissions have risen with business expansion; the company is working to set emissions reduction targets.
- Risks include possible lower-than-expected fleet or yard utilization and potential delays in offshore wind projects impacting vessel demand.
- Valuation remains attractive with a target price of S\$0.14 (representing a 19.7% upside), supported by strong financial execution and sector-leading growth prospects.
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.cgsi.com
