Grand Banks Yachts

[weijian]

Just wondering if this is more of a cyclical stock. If one were to view it this way, then entry points should be made when the stocks gets very beaten down. Personally i wont view it as a value stock such that i buy and hold

As expensive yachts are passionate toys for a certain category of rich men, and rich men who can sustain their wealth and lifestyle would continue to consume and buy material things to enrich their lives, I suppose if a yacht company can have the right products and smart marketing, there should be business out there throughout the normal economic cycles. The fact that the luxe Mercedes S-Class continues to sell with each model upgrade supports this market/business logic.

Genting Group through their listed Hong Kong unit Genting Hong Kong Ltd is now that largest shareholder (26.9%) of GB, and Genting's patriarch Tan Sri Lim Kok Thay owns another 1.66% in his personal name. Perhaps someone can ask Tan Sri Lim how he looks at his and Genting's investment in GB?

https://links.sgx.com/FileOpen/Grand_Ban...eID=581200

Tan Sri is worth about 2.7bil USD (3.8bil SGD). Based on a market cap of 40mil, Tan Sri's 1.66% is worthed about 0.6mil sgd, or 0.016% of his net worth.

The median wealth of an adult in Singapore is ~136k sgd and 0.016% net worth translates to ~2200sgd. We can probably buy an iphone and laptop with those money.

Well, i think an iphone+laptop is serious money to me. But i am not rich and can't fathom the wondrous ways that the rich tinks, especially when a ex-PM wife say 600k is peanuts.

[brattzz]

Tan Sri Lim only needs a garge to service his and his friend's many yachts,

[dydx]

Tan Sri Lim only needs a garge to service his and his friend's many yachts,

This you can also ask Tan Sri Lim, and may be his friends include GB's CEO Mark Richards!  
But seriously, GB's expanded yard in Pasir Gudang does very little servicing, as it has been revamped to become a large and modern production facility now for all 3 GB's brands - Grand Banks, Palm Beach, and East Bay - with enough capacity and R&D to support this growing business..

[karlmarx]

Auto manufacturers spend large sums of money developing new models, and hope their cars will sell well for many years to recoup the investment spent in development. The cars don't make much on margins, it is the parts which sell for more lucrative margins. More cars sold = more parts sold = more profits.

So having more models in your line-up means more capital expenditure and working capital requirement.

Ideally, the manufacturer only develop and produce one model, and sell them better than hot cakes.

In a less ideal situation, the manufacturer develops many models, and all of them don't do well enough to recoup their development cost.

In the real world, the manufacturer has to offer several models to target/satisfy different markets. So what separates the profitable manufacturer from those that are less-profitable is usually the number of cars/boats sold for each model.

Hence, the concern for GBY investors should not be whether there is a demand for luxury yachts -- which there surely is -- but whether GBY is selling enough of each yacht it develops to be able to earn a satisfactory return.

Yet, as the economy teeters towards another recession, it may be some time before the market for luxury yacht recovers to its glory years of 06/07.

[dydx]

Apart from the more traditional trawler yachts under the Grand Banks brand, GB also produces the more sporty-looking yachts under the Palm Beach brand..
https://www.youtube.com/watch?v=OQjDYOImMN4 [featuring PB65, PB55, PB50 and PB-GT50]
https://www.youtube.com/watch?v=VgNr0aswgmI [featuring PB65]

[dydx]

Last evening's announcement..
https://links.sgx.com/FileOpen/GB_1QFY20...eID=636041

[¯|_(ツ)_/¯]

Grand Banks@30
https://links.sgx.com/FileOpen/Temporary...eID=669889
Between 1 to 14 June 2021 (the “Period”) only activities and services deemed essential by Malaysia’s National Security Council will be allowed. In compliance with the Order, the Group’s manufacturing yard in Pasir Gudang will halt operations during this Period. 

As the COVID-19 situation remains fluid and the Government of Malaysia has yet to determine when the country can enter a less restrictive phase, the Group is unable to ascertain the financial impact of these developments on its operations.

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

Grand Banks@28

Update on Operations at Malaysian Yard with latest COVID-19 Movement Restrictions

On 27 June 2021, the Malaysian Government announced that restrictions will stay in place until infections in the nation fall below 4,000 daily cases. As a result, operations at the Group’s manufacturing yard in Pasir Gudang, Johor, will continue to cease until such restrictions are lifted.

The Group expects the suspension of operations to impact its performance for the fourth quarter ending 30 June 2021. The Board will continue to monitor the situation and will make the appropriate announcement(s) when there are material developments on this matter.
https://links.sgx.com/FileOpen/Update_on...eID=672621

Stay home and stay safe, everyone.

[dydx]

Very nice recently revamped website..
https://www.grandbanks.com/

Based on the last done share price at $0.305 and the latest (30Jun21) outstanding issued shares of 184.635m, market cap now stands at $56.3m, or the equivalent of one GCB in a prime district in SG.

[dydx]

Sister brand Palm Beach also has a very nice recently revamped website..
https://www.palmbeachmotoryachts.com/

The group now has 2 strong brands and a very wide and appealing product range of motor yachts.