DBS Group Research analyst Ho Pei Hwa believes ASL Marine is positioned for “sustainable profitability” and is likely to distribute dividends. This comes after the company’s debt has been reduced to $172.5 million from $423 million in 2019. Its gearing is expected to fall below 0.5 times as well.

Like Yon, Ho also notes the company’s “new growth phase” with its FY2026 earnings projected to double to around $300 million, driven by asset disposals and debt reduction. FY2027 is also likely to see double-digit growth from its shipyard expansion in Batam and Singapore.

“The group’s turnaround is underpinned by a robust ship repair segment — now contributing over 70% of gross profit — and the early upcycle in regional tug and barge markets, while pivoting away from the cyclical and low-margin offshore support vessel (OSV) business,” Ho writes.

“The company plans to divest its remaining OSVs and rejuvenate its tug and barge fleet with over 20 new, greener vessels. These moves are expected to cut costs, improve margins, and unlock up to half of its $132 million structured loan,” she adds.

Based on her estimates, ASL Marine, which is trading at just 7 times its FY2026 P/E and 2 times its P/BV, valuation upside exists.

Ho has also pegged a fair value potential at 28 cents to 30 cents if pegged to peer multiples, which is around 9 times to 10 times P/E and a return on equity (ROE) of around 25%.