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."
"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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