GYG plc was formed from the joint venture of two highly prestigious global superyacht painting, service and supply companies: Pinmar and Rolling Stock. With over 70 years' collective experience in the superyacht industry, GYG is now a leading provider of services to the world's superyacht fleet. 


Ready to set sail
Published: Jul 05 2017

GYG plc is a global leader in a specialist segment of the expanding superyacht market. The company operates in the new build, refit and retail areas of the lucrative superyacht painting and maintenance market, and given the financial strength and cash generation of the business, we believe it will enjoy growth via both organic and acquisitive means. 
Superyachts are owned by super high net worth individuals / billionaires. There is a strong correlation between the growth in the number of individuals with a net worth in excess of $1bn and growth in the number of superyachts in the world, and importantly, growth has been consistent throughout the past two decades despite economic cycles. 
GYG is the market leader in the specialist painting / maintenance area and has a 17% market share of the growing global large superyacht refit market. With specialist knowledge, key relationships, financial strength and geographic reach, we think that the company's market share will grow.
The global superyacht market is an asset-light business that is driven by relationships. To this end the company has developed strong relationships with owners and representatives of many of the world’s largest yachts, as well as a  reputation for quality workmanship, complex project management, timeliness and convenience of locations in key areas.
The stock has come to market on a forecast 2017 PER of 11.1x, falling to 8.9x in 2018, and 7.4x in 2019. This rating compares very favourably to a basket of other support services companies which we have used for comparative analysis that trades on 15.9x; especially given our forecasts suggest 19% CAGR in adjusted EPS over the forecast period. The shares at issue price also offer an annualised dividend yield of 6.4%.