In his Feb 19 report, Seet anticipates MPM to perform even better in the second and third quarters of FY2026. Despite increasing its fleet size, he notes that utilisation improved y-o-y from 71% to 76% in 1QFY2026, leading to revenue growth and stronger y-o-y gross profit margin of 14% from 10.6%. In addition, Seet also expects fleet utilisation will be even high q-o-q through 3Q before easing in 4Q before rising again in 1Q. Longer-term wise, he expects MPM’s next-gen commissioning service operation vessel, or CSOV Plus, to boost profitability around FY2028/2029.
Another reason for Seet’s optimism is the investment by Michael Kum in MPM. In January 2026, Kum, through Halom Investments, bought 150 million shares in MPM at 13 cents each. Seet believes that Kum has a “strong” track record of identifying and investing in growing companies in the marine industry. He also thinks that MPM’s direction and growth could potentially benefit from Kum’s connections and experience.
Maybank projects MPM’s earnings per share to grow significantly from FY2027 to FY2030 on the back of fleet expansion and potential newbuild contracts as it expands its shipyard capabilities and capacity with a fourth new dry dock which became operational in August 2025.
Meanwhile, in his Feb 23 report, RHB analyst Alfie Yeo maintains MPM at “buy” with TP of 18 cents per share, a 0.3 cents increase from January 2026. With revenue and gross profit remaining “on track” to meet estimates, Yeo views MPM as a “steady” company, with growth supported by increasing fleet size, new fourth dry dock at MPM’s shipyard and a “strong” orderbook.
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Segmentally, Yeo notes that the deployment of the new CSOV and three crew transfer vessels not only increased fleet size and capacity, but also led to a “more favourable” sales mix. With the new vessels earning better rates and combined with stronger utilisation, gross profit for the segment rose y-o-y from 41.1% to 42.7%.
For shipbuilding and repair, Yeo points out that the segment recorded a y-o-y revenue decline of 9% to $10 million, mainly due to less shipbuilding activities, but offset by more ship repair projects.
In the immediate-term, Yeo expects growth for FY2026 to be driven by a combination of its newly deployed vessels and enhanced shipyard capacity which allows MPM to take on more ship repair projects. RHB remains “buoyant” on MPM’s outlook as revenue will be progressively recognised from its $198 million advanced oceanographic research vessel ship building order for Taiwan’s National Academy of Marine Research. Margin-wise, RHB sees sustained demand at "attractive" rates — supporting “firm” gross margins — for MPM’s four newly deployed vessels.
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Longer-term wise, Yeo points out that MPM is on track to submit its listing application for its 49% indirectly-owned subsidiary PKR Offshore to the Taiwan Stock Exchange by September 2026. The listing will enable MPM to raise funds for vessel development including CSOVs, to better serve the high-growth offshore wind markets.
RHB believes that MPM’s Feb 19 closing price of 16 cents represents a “compelling” price/earnings to growth ratio of less than one. Its discounted cash flow based valuation TP of 18 cents reflects a forward P/E of 15 times for FY2026.
