Scoop of the Day

MPM is enjoying steady growth in its operations and bottom line, fuelled by an

increasingly energy-hungry Indonesia. The growth profile combined with

demonstrated technical superiority means the stock should enjoy a premium, yet it

trades at 1.0x historical-cost book. MPM is a conviction call with a potential to

double in 2-3 years. MPM is one of the very rare companies which can safely

operate in Indonesian waters, without running afoul of the strongly-enforced

cabotage laws and without having to worry about local partners, by virtue of

management’s nationality. Associate PT BBR is listing today on the JSX. PT Bina

Buana Raya, MPM’s 49%-owned associate, is listing today on the JSX. This will

allow MPM to tap an alternative source of capital, much-needed in its capitalintensive

growth strategy. We are forecasting BBR to grow at a 90% EPS CAGR

for the three years to FY14F due to a fast-growing AHTS fleet, and 1H12 earnings

of US$4.5m have already far exceeded the entire FY11’s US$2.6m. Valuation: TP

$0.61. Conviction call, likely to double in 2-3 years. We value MPM at 9x FY13F

EPS, a fair multiple for 12.5% 3-year EPS CAGR. The same multiple on FY15F