Stock Name: Marco Polo
Company Name: MARCO POLO MARINE LTD.
Kim Eng Research in a Sep 26 research report says: "Marco Polo Marine's (MPM) share price has risen by about 20% from its low of 32 cents last month, buoyed by a slew of new order wins and regulatory approval for its offering of Taiwan Depositary Receipts.
"If the proposed TDR listing eventuates, the new shares would constitute about 6.8% of MPM's enlarged share capital. We reckon that part of the net proceeds, estimated to be about $10 million, could be used to reduce the company's borrowings and lower net gearing which was 50% as at end-June. MPM announced that it has secured a shipbuilding order, worth about $10.5m, to build five deck cargo barges for its Indonesian associate BBR.
"We trim our FY Sep11/13 EPS estimates by 11-14% mainly for the ship chartering segment in consideration of our cautious view on the O&M sector. Our target price slides from 50 cents to 44 cents, still pegged at 8x FY Sep12F PER. DOWNGRADE TO HOLD."
Company Name: MARCO POLO MARINE LTD.
| Research House: Kim Eng | Price Call: HOLD | Target Price: 0.44 |
Kim Eng Research in a Sep 26 research report says: "Marco Polo Marine's (MPM) share price has risen by about 20% from its low of 32 cents last month, buoyed by a slew of new order wins and regulatory approval for its offering of Taiwan Depositary Receipts.
"If the proposed TDR listing eventuates, the new shares would constitute about 6.8% of MPM's enlarged share capital. We reckon that part of the net proceeds, estimated to be about $10 million, could be used to reduce the company's borrowings and lower net gearing which was 50% as at end-June. MPM announced that it has secured a shipbuilding order, worth about $10.5m, to build five deck cargo barges for its Indonesian associate BBR.
"We trim our FY Sep11/13 EPS estimates by 11-14% mainly for the ship chartering segment in consideration of our cautious view on the O&M sector. Our target price slides from 50 cents to 44 cents, still pegged at 8x FY Sep12F PER. DOWNGRADE TO HOLD."
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