Penguin International

[dydx]

I am very impressed by the following opening statement extracted from the 1st-page of Penguin's corporate website....

Rise of the Flex. In June 2013, Penguin Shipyard International completed its 50th Flex crewboat, a Flex-38SL, for a Russian ship owner. Christened "Kirrie", the vessel will join a global deployment of Flexes, from Asia to Africa. With a build cycle of less than six months - from keel lay to end of commissioning - we are the world's fastest builder of crewboats. And with more than 20 Flex crewboats under construction in 2013, we are also the world's most prolific crewboat builder. Come visit us at the Home of the Flex!

Raw Speed. In October 2012, Penguin Shipyard International delivered the WORLD’S FASTEST CREWBOAT WITH MECHANICAL CONTROLLED ENGINES, the Flex-38S, which can cruise in excess of 26 knots with 31.5 tons of deadweight. The Flex-38S is a new generation of crewboats designed specifically for speed efficiency.

Green Speed. In May 2012, Penguin Shipyard International delivered its first Flex-38 Green Crewboat, Pelican Grace, to Pelican Offshore Services. The Flex-38 is a new generation of fuel-efficient crewboats that save on fuel without compromising on performance.


Visit the website and read the FY12 AR to learn more about this gem-grade but under-appreciated company.....
http://www.penguin.com.sg/
http://infopub.sgx.com/FileOpen/Penguin%...leID=15172 [FY12 AR]

[Ben]

From the web site, I can see that the company will be launching the Flex-50 in 2013. At 50 meter, I believe this is the biggest FSIV it has ever built. Certainly, the company is growing both financially and technically. It will be exciting to see how the new Flex-50 will propel the company forward.

[dydx]

The emperor Penguin has taken flight this morning! It looks like there are serious parties out there who are prepared to mark up the price level in order to collect volume.

[lonewolf]

Technically, Penguin is a species of flightless bird so it cannot fly.

I'm a little perplexed by the recent interest in the company considering that its been in stock limbo for years. For a company that started as a ferry service company, I was a little taken aback when it decided to sell that business off. Concentrating its resources on the crew ship building segment seems like a risk considering that its yards is not of substantial size to reap economies of scale.

So what could be fueling the interest in this company out of the hundred on SGX that are under-performing and mediocre at best?

[Bibi]

I would think its traders at play. Most of the pennies are up today and yesterday, although i do agree that penguin is a fundamentally sound company compared to other pennies companies. 12 cts was my first sell target price and i sold off 16% of my holdings this morning.

[SLC81]

The emperor Penguin has taken flight this morning! It looks like there are serious parties out there who are prepared to mark up the price level in order to collect volume.

dydx, you seems to monitor stocks full time ? yes, another another leg up. still more to go up, possibly 0.14 soon

[kayaroti]

What is the fair value for this Penguin ?

[dydx]

What is the fair value for this Penguin ?

Penguin's business is now riding on and into a sweet spot - increasing orders/revenue on the demand side (for both new-build offshore crew boats for sale, and increasing charter income from its own ferry/offshore crew boats fleet), and expanded current production capacity of up to 7 crew boats a quarter, or approx. 30 crew boats a year, on the supply side.

Based on the latest (30Jun13) NAV/share of $0.1547 and 2Q's EPS of $0.0089/quarter (or $0.036/share), Penguin's NAV/share could well hit $0.175 by 31Dec13. And based on 2Q's running rate, Penguin's after-tax FCF (before capex) could well hit $30.0m a year, or approx. $0.045/share.

A PER of 8x on a yearly EPS of $0.036 will give a FV estimate of $0.288; and a multiple of 6.5x on a FCF/share of $0.045 will give a FV estimate of $0.2925. Are these FV estimates too far-fetched?

[kayaroti]

What is the fair value for this Penguin ?

Penguin's business is now riding on and into a sweet spot - increasing orders/revenue on the demand side (for both new-build offshore crew boats for sale, and increasing charter income from its own ferry/offshore crew boats fleet), and expanded current production capacity of up to 7 crew boats a quarter, or approx. 30 crew boats a year, on the supply side.

Based on the latest (30Jun13) NAV/share of $0.1547 and 2Q's EPS of $0.0089/quarter (or $0.036/share), Penguin's NAV/share could well hit $0.175 by 31Dec13. And based on 2Q's running rate, Penguin's after-tax FCF (before capex) could well hit $30.0m a year, or approx. $0.045/share.

A PER of 8x on a yearly EPS of $0.036 will give a FV estimate of $0.288; and a multiple of 6.5x on a FCF/share of $0.045 will give a FV estimate of $0.2925. Are these FV estimates too far-fetched?

Thanks. Will keep it in my radar.

[orang]

What is the fair value for this Penguin ?

Penguin's business is now riding on and into a sweet spot - increasing orders/revenue on the demand side (for both new-build offshore crew boats for sale, and increasing charter income from its own ferry/offshore crew boats fleet), and expanded current production capacity of up to 7 crew boats a quarter, or approx. 30 crew boats a year, on the supply side.

Based on the latest (30Jun13) NAV/share of $0.1547 and 2Q's EPS of $0.0089/quarter (or $0.036/share), Penguin's NAV/share could well hit $0.175 by 31Dec13. And based on 2Q's running rate, Penguin's after-tax FCF (before capex) could well hit $30.0m a year, or approx. $0.045/share.

A PER of 8x on a yearly EPS of $0.036 will give a FV estimate of $0.288; and a multiple of 6.5x on a FCF/share of $0.045 will give a FV estimate of $0.2925. Are these FV estimates too far-fetched?

7 crew boats per quarter may be a little stretched at this point time.
Perhaps we could bear in mind the 1H PAT is only about $7.4m