Gaylin

Gaylin: Provides rigging and lifting equipment such as wire rope slings to the offshore oil and gas industry. CEO Desmond Teo was interviewed The Straits Times. Gaylin has ~$110m worth of goods on its shelves as at Sep 30 and it needs all of it to hand. Teo notes with pride that Gaylin has a more comprehensive inventory stock compared to some of its competitors in Australia, Hong Kong, China, Vietnam, Indonesia and the Middle East. This strategy allowed the firm to meet an urgent late-night sale requests. Being known for tight delivery deadlines and efficiency has helped the firm grow. Being in Singapore in the 1970s and 80s, when the energy, petroleum refinery and ship building sectors took off, also helped. The company, which employs 160 staff here, will be busy next year. It will acquire 51% of Rig Marine Holdings FZC. Rig Marine, which supplies and inspects deck equipment, operates in the United Arab Emirates, Azerbaijan and Kazakhstan. It has also acquired 90% of Korean company Phoenix Offshore, a wholesale trader and chandlers' supplier. Gaylin did not have specific plans to expand overseas but increasing demand from places like Malaysia and Indonesia pushed it to seeking opportunities offshore. A new 100,000 sq ft plant in Malaysia has just been completed. Some manufacturing operations will be transferred there from Singapore. Teo reckons at least $20m would be required to start a firm to compete with Gaylin, which listed here last year. The group’s net profit rose 17% y/y to $3.7m in 2QFY14, while revenue soared 38.8% to $29m. The stock listed at 35¢ on Oct 24 last year and closed at 59¢ last Friday.