Grand Banks Yachts

Grand Banks Yachts: ($0.25) To be removed from SGX Watch-List tomorrow Market Insight reiterates its value call on Grand Banks, after the luxury boat maker received approval from SGX to be removed from the Watch-List, effective 9 Oct. The positive piece of news may hold the key for a potentially re-rating catalyst, underpinned by the pick-up of buying interest for yachts in the region, especially in Singapore and Japan. Two months back, Grand Banks announced sterling 4QFY14 results, which boasted stronger sales amid buoyant demand, as well as margin recovery following stringent cost-cutting efforts. Post consolidation of Australia’s Palm Beach Motor Yacht in Aug, the enlarged group now boasts an aggregate net order book of $19.8m. Over the next three months, Grand Banks will feature new models like the Grand Banks GB50 Flybridge and the Palm Beach PB52 at several boat shows in the US and Europe, including the famous Cannes Boat Show. At $0.25, Grand Banks is attractively valued at 0.85x P/B, supported by net cash of $0.154/share, compared to its closest peer, China-listed Sunbird Yacht at 2.7x P/B.