$MarcoPolo Marine (5LY.SG)$ Marco Baltic Industries (Marco P...

Marco Baltic Industries
(Marco Polo Marine)

Suggestion: Buy

Target price: 0.038 yuan

Closing price: 0.029 yuan (no rise or fall)

Fiscal year 2021 was a very strong year, as the Group's fleet utilization rate was better than expected and the shipbuilding business improved. We like Marco Baltic's lean operating structure after the restructuring, and believe the company will benefit from active operating leverage.

Marco Baltic's efforts to diversify its business have also paid off. The group has successfully entered the renewable energy sector and is increasingly less dependent on oil and gas. Currently, Marco Baltic's two OSV charters are supporting wind farm development projects offshore in the Asia-Pacific region. After diversifying its business, the Group's ships have found new uses. This is a great opportunity for the group's fleet, especially in the face of the growing offshore wind energy industry in Asia.

In view of this, we continued to give the stock a “buy” rating and raised the target price slightly to 0.038 yuan.

(Dahua Jixian)