Friday, January 10, 2014

Marco Polo Marine -Sailing into higher growth (AM)

Marco Polo Marine Ltd
LAST CLOSE: S$0.380
FAIR VALUE: S$0.550
Sailing into higher growth

Marco Polo Marine Ltd (“MPM”) is an integrated marine logistics group whose primary business include 1) Ship owning & chartering and 2) Shipyard services. The chartering division provides mainly Anchor Handling Tug Supply (“AHTS”) vessels as well as Tugs and Barges to various industries. The shipyard division undertakes ship building, repair and maintenance, outfitting and conversion services from its yard in Batam, Indonesia.


Indonesia growing need for energy. With oil production forecasted at 825K bbl/d in 2013 relative to consumption of 1.6m bbl/d, we see an immediate need for the government to promote oil and gas exploration activities in the coming years. This will boost requirements for offshore support vessels such as those provided by MPM.

Operating in a cabotage protected environment. MPM is able to partake in Indonesia’s fast growing oil and gas market through its 49.6% stake in PT BBR. The cabotage law enforced in 2012 benefited MPM through higher barrier of entry whereby foreign-flagged AHTS vessels are no longer eligible to bid for projects in Indonesia.
MPM focus on the relevant assets. MPM’s current strategy is to own and operate mid-sized 8,000BHP AHTS vessels. With offshore production increasingly moving towards deep-water, MPM is in a sweet spot with its 8,000BHP category vessels capable of both shallow and deep-water operations.

Progressive delivery of vessels provides visibility. With six new 8,080BHP vessels being progressively delivered from May 2014 onwards, earnings growth is visible for the next 2 years. Possible foray into other asset classes such as subsea vessels or jack-up rigs will provide the next leg of growth beyond 2015.  

Initiate BUY with FV S$0.550. We value MPM at 9.6X FY14 P/E, in line with its average historical P/E valuation based on normalized PATMI earnings. Fair value of S$0.550 is derived, translating to an upside of 48%, inclusive of a forecasted yield of 3.6%.


Source/Extract/Excerpts/来源/转贴/摘录: AmFraser-Research
Publish date:07/01/14

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock