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UOB Kay Hian raises Marco Polo Marine’s TP to 3.8 cents with strong FY2021 results

Chloe Lim
Chloe Lim12/9/2021 3:8 PM GMT+08  • 3 min read
UOB Kay Hian raises Marco Polo Marine’s TP to 3.8 cents with strong FY2021 results
UOB Kay Hian maintains a “buy” rating on Marco Polo Marine (MPM SP) and slightly increased its target price to 3.8 cents
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UOB Kay Hian analyst Clement Ho maintains a “buy” rating on Marco Polo Marine (MPM SP) and slightly increased its target price to 3.8 cents from 3.6 cents with an upside of 34.7%.

“We value MPM at 1.1 times FY2022 P/B, in line to +2 standard deviation of its historical 5-year average on the back of improving charter rates, better vessel utilisation rate, and an already-impaired book value of 3 cents per share,” says Ho.

This is supported by the anticipated rise in core EBITDA from $10.2 million in FY2021 to $14.1 million in FY2024, or a 11% compound annual growth rate over the 3-year period. “MPM is currently trading at 0.82 times FY2022 P/B and we believe valuations are supported by the massive writedown on its assets undertaken during the corporate restructuring in FY2017,” says the analyst.

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