Stock Name: Marco Polo
Company Name: MARCO POLO MARINE LTD.
OCBC Investment Research in an Aug 1 research report says: "Marine Ltd (MPM) is a growing integrated marine logistics group. Since the commencement of ship chartering operations in 1991, the group has built a track record of 20 years in the industry.
"Though MPM's vessels had an utilisation rate of 85% in FY2010 due to reflagging of vessels, the group consistently saw a 99% utilisation rate for FY2004-FY2009. Though MPM's revenue is expected to increase with its fleet expansion and greater ship repair activity, we are more conservative in our operating margin estimates due to 1) a competitive ship repair environment, and 2) expenses from the group's sale and leaseback programme.
"As such, 3QFY11 results are likely to remain soft. Fair value estimatevof 48 cents (upside potential about 19%), based on 10x FY12F earnings. BUY (initiating coverage)."
Company Name: MARCO POLO MARINE LTD.
| Research House: OCBC | Price Call: BUY | Target Price: 0.48 |
OCBC Investment Research in an Aug 1 research report says: "Marine Ltd (MPM) is a growing integrated marine logistics group. Since the commencement of ship chartering operations in 1991, the group has built a track record of 20 years in the industry.
"Though MPM's vessels had an utilisation rate of 85% in FY2010 due to reflagging of vessels, the group consistently saw a 99% utilisation rate for FY2004-FY2009. Though MPM's revenue is expected to increase with its fleet expansion and greater ship repair activity, we are more conservative in our operating margin estimates due to 1) a competitive ship repair environment, and 2) expenses from the group's sale and leaseback programme.
"As such, 3QFY11 results are likely to remain soft. Fair value estimatevof 48 cents (upside potential about 19%), based on 10x FY12F earnings. BUY (initiating coverage)."
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