Grand Banks Yachts

[dydx]

From the latest 1H results - with sharp YoY increases in revenue and profits, and included a surprise $0.005/share interim dividend - announcement...
https://links.sgx.com/FileOpen/GB1HFY202...eID=786555
we know the Group recorded 11 new boat orders in 1H-FY24 (similar to 1H-FY23), and a net order book of $137.3m as at 31Dec23 (vs. $159.4m as at 30Jun23) - equating to approx. 14 months of current production (basis: 1H-FY24's external revenue from Manufacturing & Trading segment at $57.58m). To meet anticipated demand, management is adding 25% production capacity to reduce/clear the backlog, reduce wait time, and facilitate construction of bigger, sleeker and more fuel-efficient models. The added capacity should also allow the Group to eventually build limited number of stock boats to meet potential quick sales to new boat buyers who cannot wait 14 months for a build-to-order boat.

[weijian]

Grand Banks is performing significantly better, especially in terms of margin, perhaps due to production of bigger, higher value yachts. something not seen for more than 10 years. Perhaps partly due to the current bullish stock market conditions, if Chinese market join in, then it would be even better.

How long does it take to build a yacht? A short summary of new orders and order book.

1HFY2024  New order: 11 Order book as at period end: 137.3M
FY2023      New order: 19 Order book as at period end: 159.4M
FY2022      New order: 31 Order book as at period end: 182.9M
FY2021      New order: 40 Order book as at period end: 116.9M
FY2020      New order: 35 Order book as at period end: 48.9M

Me: How long does it take to build a yacht

ChatGPT: The time it takes to build a yacht can vary significantly based on factors such as the size and complexity of the yacht, the materials used, and the customization requested by the owner. Smaller yachts may take a few months to a year to build, while larger and more complex ones can take several years.

The Grand Banks I googled do not seem to suggest they are on the level as Jho Low's. So I reckon GB yachts probably take ~6 months to build. Might be longer with more specific customizations.

[dydx]

As a well-established yacht builder now producing just 20+ boats a year and making a PBT in excess of $20.0m (extrapolating from 1H-FY24's PBT at $10.5m), it is very good performance indeed!

[donmihaihai]

Grand Banks is performing significantly better, especially in terms of margin, perhaps due to production of bigger, higher value yachts. something not seen for more than 10 years. Perhaps partly due to the current bullish stock market conditions, if Chinese market join in, then it would be even better.

How long does it take to build a yacht? A short summary of new orders and order book.

1HFY2024  New order: 11 Order book as at period end: 137.3M
FY2023      New order: 19 Order book as at period end: 159.4M
FY2022      New order: 31 Order book as at period end: 182.9M
FY2021      New order: 40 Order book as at period end: 116.9M
FY2020      New order: 35 Order book as at period end: 48.9M

Me: How long does it take to build a yacht

ChatGPT: The time it takes to build a yacht can vary significantly based on factors such as the size and complexity of the yacht, the materials used, and the customization requested by the owner. Smaller yachts may take a few months to a year to build, while larger and more complex ones can take several years.

The Grand Banks I googled do not seem to suggest they are on the level as Jho Low's. So I reckon GB yachts probably take ~6 months to build. Might be longer with more specific customizations.

thank you and I wasn't looking and expecting an answer. 

Just asked to link the very decent results to a declining order book, yard expansion under a bullish stock market condition and bright outlook by the management.

[weijian]

Grand Banks is performing significantly better, especially in terms of margin, perhaps due to production of bigger, higher value yachts. something not seen for more than 10 years. Perhaps partly due to the current bullish stock market conditions, if Chinese market join in, then it would be even better.

How long does it take to build a yacht? A short summary of new orders and order book.

1HFY2024  New order: 11 Order book as at period end: 137.3M
FY2023      New order: 19 Order book as at period end: 159.4M
FY2022      New order: 31 Order book as at period end: 182.9M
FY2021      New order: 40 Order book as at period end: 116.9M
FY2020      New order: 35 Order book as at period end: 48.9M

Me: How long does it take to build a yacht

ChatGPT: The time it takes to build a yacht can vary significantly based on factors such as the size and complexity of the yacht, the materials used, and the customization requested by the owner. Smaller yachts may take a few months to a year to build, while larger and more complex ones can take several years.

The Grand Banks I googled do not seem to suggest they are on the level as Jho Low's. So I reckon GB yachts probably take ~6 months to build. Might be longer with more specific customizations.

thank you and I wasn't looking and expecting an answer. 

Just asked to link the very decent results to a declining order book, yard expansion under a bullish stock market condition and bright outlook by the management.

The data from the outsider doesn't match to the insider's call. The outsider will have to analyze more and hopefully, get a good view on the insider's call. Plenty of time to do so.

[dydx]

Featuring Grand Banks' GB 54 - an entry-level yacht... 
https://www.linkedin.com/posts/grand-ban...er_desktop

[weijian]

Added FY24 order book and the working capital onto VB donmihaihai's previous post.

FY2024      New order: 9 Order book as at period end: 120M, Working Capital=13.5mil
1HFY2024  New order: 11 Order book as at period end: 137.3M, Working Capital=-3mil
FY2023      New order: 19 Order book as at period end: 159.4M, Working Capital=-4.5mil
FY2022      New order: 31 Order book as at period end: 182.9M, Working Capital=-10mil
FY2021      New order: 40 Order book as at period end: 116.9M, Working Capital=-9mil
FY2020      New order: 35 Order book as at period end: 48.9M, Working Capital=11mil

In AR24, CEO explained that boat sizes are getting larger, which explains why total order book amount hasn't dropped as much as the no. of new boat orders. One thing that really stood out was the negative working capital that GBY found itself in from FY21 onwards. GBY were in a negative working capital position for the last 3 FYs and more, till the end of FY24 reporting. end FY24's working capital turned positive again mainly due to completed boats as inventory and paying down more payables.

But the whole thing that triggered the negative working capital position, was a doubling of contract liabilities (ie. customer deposits) after FY20, which coincided with the increase in order book. The amazing thing is that contract liabilities has since stayed relatively constant at ~22-23mil since FY21 onwards, despite the order book reducing -33% from peak. This suggest progressive payment terms have been tighter than the earlier go-go years of FY21.

AR24: https://links.sgx.com/FileOpen/Grand_Ban...eID=821109

[dydx]

Featuring Palm Beach's newest flagship PB107...
https://www.linkedin.com/posts/palm-beac...er_desktop

[dydx]

Grand Banks (including Eastbay)/Palm Beach yachts sold by Steve Fithian - a top independent sales agent - and his daughter Sara over the recent years...
https://www.grandbanksspecialist.com/recently-sold

From Fithian's reported 2024 sales, the new models GB65 (2025) and GB73 (2026) have been sold even when construction of the respective hulls #1 are not completed yet. Such is the allure of Grand Banks yachts! Also, the hull form design/construction of the group's yachts seem so flexible that slightly longer/bigger yachts can be quite easily added/created to meet buyers' wishes for a variant or new boat design. This is awesome! The current GB range comprises 7 models, compared with 3 (GB54, GB60, and GB85) just last year...
https://www.grandbanks.com

[dydx]

Added FY24 order book and the working capital onto VB donmihaihai's previous post.

FY2024      New order: 9 Order book as at period end: 120M, Working Capital=13.5mil
1HFY2024  New order: 11 Order book as at period end: 137.3M, Working Capital=-3mil
FY2023      New order: 19 Order book as at period end: 159.4M, Working Capital=-4.5mil
FY2022      New order: 31 Order book as at period end: 182.9M, Working Capital=-10mil
FY2021      New order: 40 Order book as at period end: 116.9M, Working Capital=-9mil
FY2020      New order: 35 Order book as at period end: 48.9M, Working Capital=11mil

In AR24, CEO explained that boat sizes are getting larger, which explains why total order book amount hasn't dropped as much as the no. of new boat orders. One thing that really stood out was the negative working capital that GBY found itself in from FY21 onwards. GBY were in a negative working capital position for the last 3 FYs and more, till the end of FY24 reporting. end FY24's working capital turned positive again mainly due to completed boats as inventory and paying down more payables.

But the whole thing that triggered the negative working capital position, was a doubling of contract liabilities (ie. customer deposits) after FY20, which coincided with the increase in order book. The amazing thing is that contract liabilities has since stayed relatively constant at ~22-23mil since FY21 onwards, despite the order book reducing -33% from peak. This suggest progressive payment terms have been tighter than the earlier go-go years of FY21.

AR24: https://links.sgx.com/FileOpen/Grand_Ban...eID=821109

The easier way is to just take the cue from the last para of CEO's Message in the AR, reproduced below....

Finally, I would like to thank our shareholders for joining us throughout our journey. I am confident we will continue to grow from strength to strength to add long-term value to you. 

MARK J RICHARDS Chief Executive Officer & Executive Director