Marco Polo: Kim Eng initiates coverage with Buy target of $0.62 based of 9X FY11E PE. Expect grp to be potential beneficiary of Indonesia’s need for electricity as Indo continues building coal-fired power plants, leading to strong long-term demand for tugs and barges which ferries coal from mines in Kalimantan to power plants….
Cites Grp’s sales and lease back strategy to get around Indonesia’s cabotage rule, will enable grp to reduce gearing and improve cashflows. Further catalysts include the recent competition of 2 dry-docks in 09 which will provide enhanced recurring income
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