Company Coverage
Marco Polo Marine (MPM SP): 3QFY26: Broad-based Growth; Long-term Visibility Remains Solid
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.127
S$0.173
+33.9%
S$0.230
Analyst
Analyst
Highlights
- 9MFY26 revenue/gross profit of S$109.7m/S$46.4m (+30% yoy each) were in line, forming 66%/70% of our FY26 forecasts respectively.
- Ship chartering and shipyard revenues increased in 3QFY26 and 9MFY26, supported by higher fleet utilisation and stronger ship repair activity.
- Maintain BUY with a 25% lower target price of S$0.173 due to sector derating in the oil and gas industry.
Analysis
- 3QFY26 results broadly in line. Marco Polo Marine (MPM) reported 3QFY26 revenue of S$35.7m (+13% yoy), and gross profit of S$15.0m (+7% yoy), bringing 9MFY26 revenue/gross profit to S$109.7m/S$46.4m (+30% yoy each), forming about 66%/70% of our FY26 forecasts respectively. Gross margin eased to 42% from 44% due to the mix of shipyard projects.
- Ship chartering: Higher utilisation supported growth. Ship chartering revenue rose 8% yoy to S$24.0m in 3QFY26 and 26% yoy to S$68.3m in 9MFY26, supported by the expanded offshore fleet, including MP Wind Archer and three additional crew transfer vessels. Fleet utilisation improved to 72%, while charter rates are expected to remain broadly stable through 2027. Management expects the offshore support vessel market to remain firm, supported by a seasonality stronger 2H and steady demand from offshore oil & gas.
- Shipyard: Expanded capacity continued to drive growth. Shipyard revenue increased 23% yoy to S$11.7m in 3QFY26 and 37% yoy to S$41.4m in 9MFY26, mainly on higher ship repair volumes following the commissioning of Drydock 4, allowing the yard to take on more repair work as well as accommodate larger vessels (up to 240m in length). Management continues to see healthy demand for drydocks and ship repair, while the oceanographic research vessel (ORV) contract of around S$198m and ongoing CSOV+ construction should support a stronger medium-term shipbuilding pipeline.
Highlights
- 9MFY26 revenue/gross profit of S$109.7m/S$46.4m (+30% yoy each) were in line, forming 66%/70% of our FY26 forecasts respectively.
- Ship chartering and shipyard revenues increased in 3QFY26 and 9MFY26, supported by higher fleet utilisation and stronger ship repair activity.
- Maintain BUY with a 25% lower target price of S$0.173 due to sector derating in the oil and gas industry.
Analysis
- 3QFY26 results broadly in line. Marco Polo Marine (MPM) reported 3QFY26 revenue of S$35.7m (+13% yoy), and gross profit of S$15.0m (+7% yoy), bringing 9MFY26 revenue/gross profit to S$109.7m/S$46.4m (+30% yoy each), forming about 66%/70% of our FY26 forecasts respectively. Gross margin eased to 42% from 44% due to the mix of shipyard projects.
- Ship chartering: Higher utilisation supported growth. Ship chartering revenue rose 8% yoy to S$24.0m in 3QFY26 and 26% yoy to S$68.3m in 9MFY26, supported by the expanded offshore fleet, including MP Wind Archer and three additional crew transfer vessels. Fleet utilisation improved to 72%, while charter rates are expected to remain broadly stable through 2027. Management expects the offshore support vessel market to remain firm, supported by a seasonality stronger 2H and steady demand from offshore oil & gas.
- Shipyard: Expanded capacity continued to drive growth. Shipyard revenue increased 23% yoy to S$11.7m in 3QFY26 and 37% yoy to S$41.4m in 9MFY26, mainly on higher ship repair volumes following the commissioning of Drydock 4, allowing the yard to take on more repair work as well as accommodate larger vessels (up to 240m in length). Management continues to see healthy demand for drydocks and ship repair, while the oceanographic research vessel (ORV) contract of around S$198m and ongoing CSOV+ construction should support a stronger medium-term shipbuilding pipeline.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.127
S$0.173
+33.9%
S$0.230
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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