Date and Financial Year:
The report is for the financial year ending on June 30, 2024, and is dated 2024.
Key Financial Facts:
- Revenue: A record high of S$133.7 million, showing a 17.1% increase from S$114.2 million in FY2023. This increase is driven by higher boat-building activities at the Pasir Gudang, Malaysia facility.
- Gross Profit: Improved to S$50.7 million in FY2024, a 37.9% increase from S$36.8 million in FY2023.
- Net Profit: More than doubled to S$21.4 million, from S$10.1 million in FY2023, due to improved production efficiency.
- Net Order Book: Stood at S$120.0 million as of June 30, 2024, down from S$159.4 million as of June 30, 2023.
- Operating Cash Flows: Amounted to S$9.0 million in FY2024, compared to S$15.2 million in FY2023.
- Dividend: The Board of Directors proposed a final dividend of 1.0 Singapore cent per share. Combined with an interim dividend of 0.5 Singapore cents, the total dividend payout for FY2024 would be 1.5 Singapore cents per ordinary share, the highest payout in over 15 years.
Notable Company Actions and Outlook:
- Product Development: Launch of the Palm Beach 107, the first model over 100 feet in the company’s portfolio, and the development of the Palm Beach GT50 RS Outboard model to enhance speed and fuel efficiency.
- Facility Expansion: The company is expanding its Malaysian manufacturing yard in Pasir Gudang, which will increase floor space by more than 25%. Expected to be completed in December 2024, this expansion is aimed at shortening production times and accommodating larger yacht models.
- Board Renewal: Introduction of new independent directors to strengthen the board’s expertise and diversity, including the first female director.
- Market Outlook: The company remains optimistic about the longer-term growth potential of the luxury yacht market but is cautious of short-term macroeconomic headwinds, including interest rates, operating costs, and supply chain disruptions due to geopolitical developments.
Investor Actions:
- For Current Shareholders: The company has demonstrated strong financial performance and is offering a dividend payout. The outlook remains cautiously optimistic, and ongoing expansions suggest potential growth. Holding the stock could be beneficial in the long term.
- For Potential Investors: With the company’s positive growth in revenue, profits, and plans for facility expansion, investing now could be promising. However, investors should consider the potential risks associated with market headwinds.
Special Notes for Investors:
- The company is expanding its product line with the introduction of larger and more fuel-efficient yachts, showing commitment to innovation.
- Facility expansion in Malaysia is expected to enhance production efficiency, contributing to future profitability.
- The highest dividend payout in over 15 years reflects the company’s confidence in its financial health.
Disclaimer:
The above recommendations are based solely on the information provided in the company’s annual report. Investors are encouraged to conduct their own due diligence or consult a financial advisor before making any investment decisions.
