Grand Banks

Grand Banks: The luxury yachtmaker has stepped up efforts to improve its sales and operational efficiencies after being placed on the SGX Watch List on 5 Dec 2011. The 2Q14 results showed a net profit of $0.27m, its first quarterly net profit since 2009. Although the improvement in the luxury yacht market and emerging demand from Asia Pacific have helped strengthen Grand Banks’s order book. Given its expansion plans and an improving global economy, its 3Q14 earnings should advance qoq. Grand Banks is trading at a P/BV of 0.81x. Catalysts for the company hinge on whether its earnings will continue to recover in the next few quarters, enabling it to exit the SGX Watch List and may drive a potential re-rating.