CGS International lowers Mermaid Maritime’s TP to 16 cents on lower net profit expectations

CGS International analysts Meghana Kande and Lim Siew Khee have maintained their “add” call on Mermaid Maritime (SGX:DU4) as the company’s 3QFY2024 ended Sept 30 core net profit of US$3.8 million ($5.1 million) stood in line with the analysts’ estimate. The figure excludes the impact of foreign exchange (forex), which stood at a loss of US$2.7 million.

Excluding the loss, Mermaid Maritime’s core ebit margin in the 3QFY2024 improved by 60 basis points q-o-q on a 100 basis point increase in gross margin and a 60 basis point drop in selling, general and administrative (SG&A) expense as share of revenue.