Macro Polo Marine

Macro Polo Marine: DMG says the worst is over, with the stock priced at 60% of book value. The house maintains Buy with TP $0.60. MPM had a difficult year as weak coal prices and the presidential elections resulted in slower T&B operations throughout Indonesia, dragged FY14 core net profit down30% y/y. However the T&B segment has stabilized. Meanwhile its OSV fleet will more than double, and it is only 11 mths to jack up rig delivery as the major catalyst. MPM's focus on shallow water OSVs in cabotage protected Indonesia should shield the group from oil price volatility. in addition , cabotage for jack up rigs is expected to kick in from Jan '16 , right after MPM takes delivery of its first rig.