 • For the past 8 years or so, ASL Marine focused on cashflow and steadily worked through huge debt repayments • The marine services group boasting 50 years of history has emerged from the tough times, entering a new chapter "Revitalised, Resilient, Ready" as its FY2025 (ended June) Annual Report cover says.  Ang Kok Tian, Chairman, MD & CEO of ASL Marine. File photo.• Successfully navigating multiple restructurings, ASL secured a new S$132 million five-year term loan in March 2025 from three Singapore banks, and has repaid its bondholders. • The stock market has rewarded its moves, sending it from ~7 cents three months ago to 22 cents currently. • For more, read excerpts of Lim & Tan Securities report below |
Excerpts from Lim & Tan Securities report
Analyst: Nicholas Yon
ASL Marine is led by a management team with a strong track record of integrity and financial discipline, having consistently met all debt obligations without resorting to loan haircuts.
ASL Marine’s reported profits are currently distorted by non-cash fair value amortisation losses, which are expected to taper off significantly from 1HFY26 onwards. In addition, with a sharper focus on its core tug and barge segment supporting the construction sector, and expanded repair capabilities, ASL Marine will likely post higher margins and more than double their profits in FY26. |
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ASL Marine’s growth will be driven by three key factors.
First, its fleet rejuvenation program places it in prime position to capitalise on the ongoing construction boom, particularly in coastal/infrastructure projects.
| Stock price | 22 cents |
| 52-week range | 5-24 cents |
| Market cap | S$226 m |
| PE (ttm) | 12.7 |
| Dividend yield (forward) | 0.9% |
| Source: Yahoo! | |
Secondly, the ship repair segment stands to benefit from two structural drivers: an ageing global fleet now entering its 3rd to 5th special surveys, and a
significant expansion in fl eet size following the surge in newbuild orders post-Covid.
Lastly, ASL’s continued deleveraging eff orts will help ASL achieve better margins and profitability, given its high operating leverage.
As such, we initiate coverage on ASL Marine with a BUY recommendation and a target price of $0.30, pegged to a 9.5x FY27F PE.
Our earnings growth forecasts of S$28.1mln and S$32.4mln in FY26F/FY27F are driven by
| 1) Strong tugs/barge construction and repair outlook 2) Improving repair capabilities and margins 3) Sale of idle and old vessels which will reduce debt, holding costs, interest expense and depreciation while strengthening balance sheet 4) Omission of FV losses since the full redemption of their bonds and 5) Competent and honest businessmen with strong alignment of interest holding a 62.8% controlling stake, who will prioritise long-term shareholder value. |
With vessels and yards that are recorded at cost in their books, we also believe the RNAV of ASL Marine to be closer to $0.30 instead of the reported $0.115 cents in FY25.
ASL Marine’s reported profitability for the past 5 years has been marred by the FV amortization of their bonds as a result of standard accounting practices.  Nicholas Yon, analystBack in 2019, ASL Marine faced a bond maturity that it was unable to fully redeem. Rather than resorting to bankruptcy or taking haircuts, the company opted for a responsible approach by extending the bond maturity by 5 years.This restructuring required ASL to recognise a FV gain at the time, which was subsequently amortised over the life of the bond and thus impacted earnings. With the full early redemption of the bonds, this non-cash amortisation will largely disappear, resulting in cleaner and stronger profitability in FY26. |
See the full Lim & Tan Securities report.
See how 2 other peers have re-rated: PACIFIC RADIANCE & NAM CHEONG: Positive Momentum Attracts Analyst Bullishness
