$MarcoPolo Marine (5LY.SG)$ Maybank KE believe MarcoPolo Mar...

Maybank KE believe MarcoPolo Marine is deeply undervalued. Using peer Atlantic Navigation's (AN) recent vessel sales as a gauge of value, they estimate MPM's fleet alone to be worth ~SGD195m, close to its market cap, with net cash and this is excluding its yard. AN recently sold the majority of its vessels for USD183m. But MPM's fleet is much younger with an average age of 7 years (including the new CTVs, CSOV). On MPM's book, its OSVs and barges are worth SGD60m. The CTV and upcoming CSOV are worth another SGD105m.

Maintain BUY on MPM as CSOV and CTV earnings should commence in FY25E. Coupled with higher charter rates and an increase in ship repair volumes, FY25E earnings should jump. This should represent upside for MPM. Their TP of SGD0.08 is based on 11x FY24E P/E.