Stock Evaluation and Commentary: MarcoPolo Marine | Lianhe Zaobao
Marco Polo Marine recommends buying, with a target price of 0.088 yuan and a closing price of 0.072 yuan (+1.41%). The company's newly commissioned No. 4 dry dock has secured a 5 million yuan ship repair contract, which is expected to make a significant contribution to revenue and cash flow starting from the fourth quarter of the 2025 fiscal year. The wholly-owned subsidiary has signed a three-year major supply contract with Cyan Renewables to provide services for the offshore wind power fleet. The company's 49% owned Taiwanese subsidiary PKRO plans to go public in the third quarter of 2026, raising funds to expand its fleet to meet the rapidly growing demand in the offshore wind power market
Marco Polo Marine
- Recommendation: Buy
- Target Price: 0.088 SGD
- Closing Price: 0.072 SGD (+1.41%)
Marco Polo Marine has recently been actively releasing strategic updates. Firstly, the newly commissioned No. 4 dry dock has secured its first ship repair contract valued at approximately SGD 5 million, which is expected to make a significant contribution to the shipyard's revenue and cash flow starting from the fourth quarter of the 2025 fiscal year, and will be fully reflected in the 2026 fiscal year.
At the same time, its wholly-owned subsidiary has signed a three-year Master Supply Agreement (MSA) with Cyan Renewables to provide repair, maintenance, and conversion services for the company's offshore wind fleet.
Additionally, the company's 49%-owned subsidiary in Taiwan, PKRO, plans to go public in Taiwan by the third quarter of 2026 at the latest, with the funds raised to be used for fleet expansion to meet the rapidly growing offshore wind market demand in Taiwan, South Korea, and Japan.
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With the capacity expansion of the Batam shipyard and the structural growth of offshore wind logistics, the company possesses dual engines to capture growth opportunities in both the traditional oil and gas industry and the rapidly growing renewable energy sector.
Given the favorable market conditions, multiple growth catalysts in the company, and a healthy balance sheet, we are raising the target price by 16% to 0.088 SGD, corresponding to an 11.3 times expected price-to-earnings ratio for the 2026 fiscal year. (UOB Kay Hian)
