As featured in Business Times.
RHB has initiated coverage on Marco Polo Marine with a “buy” call and a target price of 4.1 Singapore cents, on an expected turnaround on renewable energy.
In a Wednesday report, RHB analyst Jarick Seet said that Marco Polo’s diversification into servicing the renewable energy sector is expected to bear fruit in the next one or two years, with the oil and gas sector still the group’s major source of income in the meantime.
“We expect to see an earnings rebound, and the group to record a turnaround back to strong profitability in the next two to three years,” he said.
Renewable energy will be a significant growth area for Marco Polo, especially with the influx of investors entering the space. The group has previously secured shipbuilding contracts from Singapore Aquaculture Technologies (SAT) to construct two smart fish farms, which are set to complete by end-FY2021, he said.
He also noted that, as at H1 2021, 20 per cent of Marco Polo’s utilised vessels are already working on wind farm projects in Taiwan, where it has an edge – its vessels are built outside of China, a key requirement, less than 12 years old, a rarity for non-Chinese ships in the region, and more than well-equipped, thanks to stringent requirements for offshore oil and gas activities.
mm2 Asia gets offer for Cathay cinema business from Kingsmead PropertiesJul. 28, 2021
mm2 shares jump 7.5% after company gets offer for cinema businessJul. 28, 2021