$MarcoPolo Marine(5LY.SI)$ 0.30 Target Price
MarcoPolo Marine's (5LY.SI) upcoming growth is driven by strategic fleet expansion, entry into offshore wind energy, and major contract wins, supported by improving financial metrics and bullish analyst sentiment.
Key Growth Drivers:
1). SG$198 Million Research Vessel Contract
Subsidiary Marco Polo Shipyard secured a SG$198 million contract to build an advanced oceanographic vessel for Taiwan's National Academy of Marine Research, with delivery expected by year 2028.
The project is fully self-financed, indicating strong liquidity and operational confidence.
2). Fleet Expansion & Offshore Wind Focus
Added 2 new AHTS vessels (total fleet: 21) for SG$34 million, targeting oil/gas and renewable sectors.
Partnered with Norway's Salt Ship Design to construct a Commissioning Service Operation Vessel (CSOV Plus) by 2026, positioning the company in the fast-growing offshore wind market.
3). Robust Shipyard Utilization & Order Backlog
Shipyard operations reported high utilization rates, driven by repair demand and newbuild projects
Ship-chartering order book stood at SG$100 million as of June 2025, securing near-term revenue for year 2026.
4). Analyst Upgrades & Financial Resilience
Maybank Securities and CGS International raised price targets to SG$0.3 and SG$0.4 respectively, citing earnings potential from fleet upgrades and offshore wind projects.
Net profit margin improved to 20.20% in 2025Q2 (vs. 17.90% in 2024Q2), reflecting operational efficiency.
5). Strategic Share Issuances
Issued 927,000 shares under an employee option scheme, aligning stakeholder incentives without significant debt, instill confidence for exponential growth in offshore and renewable energy sector.
Modify on 2025-11-27 18:37
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