MOOR SP / 1V3.SI
Core mooring recovery; floating wind provides asymmetric upside
Offshore Marine
Mooreast’s investment case does not depend entirely on commercial floating offshore wind. FY2025’s earnings recovery was driven primarily by conventional offshore mooring projects, with mooring revenue more than tripling to S$22.9 million. We expect the segment to remain the principal earnings contributor as offshore operators continue to require engineered anchors, mooring systems, replacement equipment and lifecycle support.
The acquisition of the 60 Shipyard Crescent facility increases Mooreast’s fabrication footprint, waterfront access and ability to execute multiple projects concurrently. Management estimates that annual floating-wind support capacity could increase from approximately 0.5GW to between 1.5GW and 2.0GW.
Mooreast has established reference projects and development positions across Japan, Taiwan, South Korea, Scotland and Timor-Leste. Its equipment supplied to Japan’s Goto floating-wind project is now associated with an operating commercial project, while its Taiwan activities demonstrate offshore construction and leasing capability. However, most commercial-scale floating-wind projects remain subject to approvals, grid access, financing, offtake agreements, final investment decisions and supplier selection. We therefore treat these opportunities as probability-weighted optionality rather than firm backlog.
We initiate coverage on Mooreast Holdings with an OUTPERFORM rating and a 12-month target price of S$0.195, based on a DCF using 15.0% WACC and 2.0% terminal growth. Our target price implies 61.4% upside from S$0.121.
Key downside risks include (i) failure to replace large mooring contracts after revenue recognition; (ii) slower-than-expected utilisation of the enlarged yard; (iii) Project execution, margin and cash-conversion risk; (iv) Larger contracts may also weaken near-term cash conversion; and (v) Failure to convert renewable opportunities into binding contracts.
