SINGAPORE (Sept 13): SUTL Enterprise on Tuesday announced that it has signed a Memorandum of Understanding (MOU) with the Hainan Cruise & Yacht Association (HCYA) to be its strategic partner in the development and expansion of Hainan Island’s yachting, cruising and maritime industry.

This comes on the back of increasing interest in yachting and waterfront lifestyle among China’s wealthy in recent years.

The MOU will facilitate the exchange of ideas between the two parties with the aim to boost the island’s services and facilities at existing and upcoming marinas on Hainan Island as well as to raise the profile of HCYA as the leading association for the promotion of yachting in China.

Under the MOU, SUTL will offer advice to HCYA to improve the hardware and software of the island, with obligations to include exploring the feasibility of Hainan Island as host for international yachting events and regattas.

SUTL will also aid HCYA in equipping local personnel with the relevant skillsets and service aptitude that are of international standards by establishing a training framework.

The latest MOU marks the group’s second venture into China. The group has a contract to provide consultancy and management services to a marina under construction in Guishan, China which is scheduled to be completed in 2019.

Arthur Tay, executive director and CEO of SUTL, says, ““This is the first time a Singapore company has been brought in to consult on Hainan Island’s pleasure yachting industry. We hope the MOU will strengthen our presence in China and provide a platform for us to showcase our expertise and open doors to more opportunities.”

In a Wednesday report, Lim & Tan Securities says the development is interesting given China’s focus on developing Yachting and Regatta events as President Xi Jingping puts more focus on sporting events going forward. Bloomberg consensus currently has one analyst covering SUTL and his target price is $1.04.

Shares in SUTL are trading flat at 72 cents as at 2.49pm.