$Mermaid Maritime (DU4.SG)$ The stock trades at a 33% discou...

The stock trades at a 33% discount to global peers' 2025F P/E. CGS CIMB initiate on MMT with an Add call and TP of S$0.20, based on 11x 2025F P/E.

MMT's orderbook (OB) of US$976m, as of 2Q24, is at an 11-year high due to new decommissioning orders and renewal of IRM contracts at higher values.

Limited newbuilds over the past decade have kept global vessel supply tight, driving MMT's fleet utilisation to over 80% in 1H24, up from 50% in 2021.

They expect MMT to achieve net profit growth of 22%/70% in FY24F/25F from execution of larger-scale decom. projects and high-margin cable-lay orders.