GRP Limited (GRP) engages in several diverse autonomous business units,
namely 1) Hose and Marine, 2) Measuring Instruments/Metrology, 3) uPVC
Pipes and Fittings and 4) Industrial Property Management.


Stable business, serving reputed customers. Established since 1977, GRP is a distinguished supplier/manufacturer of quality hose and fittings with strong track record and presence. GRP serves the marine, oil and industrial sectors.

Cash-loaded, no debt financial position. As of Jun 08, GRP holds cash of S$12.3m, and has neither short-term nor long-term debt in its balance sheet.

Nonetheless, business would be hit by both offshore marine and global
economy outlook. GRP’s core business drivers stem from Hose and Marine as well as Measuring Instruments/Metrology. GRP liaises directly with the shipyards to provide customised hoses and fittings. Its measuring instruments division is dependent on the global economy. In the face of a looming outlook for both offshore marine and the global economy, we are expecting declining net profit for both FY09 and FY10.

Initiating coverage with a NEUTRAL rating. GRP is currently trading at 4.6x FY09 and 5.6x FY10 P/E.