Market giving free lunch, price drop after result and dividend yield even better now. All those insiders bought ahead and are now selling, which will undoubtedly give rise to further opportunity should there be more order flows.
Will there be coverage by brokers for this small but growing Co.?
Penguin has just updated its home page by adding in the first para the recent official sea trial results of its first Flex-50 Fast Supply Intervention Vessel christened “Pelican Victory”, also being introduced as "the choice of champions"…..
http://www.penguin.com.sg
Would fellow forumers who are knowledgeable in boats/ships care to share some comments on the technical specs of Flex-50…..
http://www.penguin.com.sg/vessel-specs/flex-50/
I hope to see more orders for this new boat coming!
Based on Friday's transaction summary, it seems that most investors are not willing to sell below 15.9 cts. 90% of the transactions are settled between 15.9 to 16.1 cts.
Today (24Feb14, Monday) is the 2nd market-day after Penguin released its FY13 full-year results last Friday (21Feb14) before market opened, and the total volume done at 8,398 lots has remained higher than normal. It appears that those who chose to sell after results have been met and taken care by new investors willing to buy in at the current 4-year high share prices and other shareholders willing to add to their positions.
Perhaps it is timely to do another valuation of Penguin's growing business based on the latest FY13 full-year results…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=275530
My own simple view is that any reasonable fair value estimate of Penguin's entire business or each Penguin share should take into account the following -
1. the current seemingly growing orders backlog - bearing in mind Penguin completed 20 boats and sold 15 to 3rd-party customers in FY13 - which is being met by a timely increase in production capacity in the Batam yard. Also, profit margins for Shipbuilding and Repair Div. at PBT level has remained at a high 18.7% on revenue (inclusive of inter-segment sales) in FY13, and it seems this positive trend is sustainable.
2. the growing charter fleet which has brought in higher rentals and - solid FCF as well - in FY13, and this has turned the Ferry & Charter Services Div. from losses to a profit in FY13. All things are pointing towards much better showings from this division going forward and into the medium term, as more high-spec crew boats are needed when offshore oil & gas activities are being carried out further and further away from shore.
3. Penguin's growing range of crew boats of its own design which now include the Flex-25, Flex-40 series (in 2 variations), and Flex-50, has better placed the company to meet many different customers' differing needs. Therefore, it is reasonable to expect Penguin to sell many more boats into the medium-term future.
4. the company's steadily growing cash reserve from FCF generated from both the Shipbuilding and Repair Div. and Ferry & Charter Services Div., coupled with good working capital management. It is indeed rare to find a shipbuilder and fleet owner like Penguin which is debt-free!
(21-02-2014, 04:08 PM)dydx Wrote: [ -> ]Penguin has just updated its home page by adding in the first para the recent official sea trial results of its first Flex-50 Fast Supply Intervention Vessel christened “Pelican Victory”, also being introduced as "the choice of champions"…..
http://www.penguin.com.sg
Would fellow forumers who are knowledgeable in boats/ships care to share some comments on the technical specs of Flex-50…..
http://www.penguin.com.sg/vessel-specs/flex-50/
I hope to see more orders for this new boat coming!
The engine is probably the single most important component in a vessel, as it power the vessel so that she can perform her duties diligently. It is hearten to know that Penguin uses diesel engine from world renowned manufacturers in Europe and USA that have long history of producing quality diesel engines for ALL its vessels. It is equally encouraging to know that Penguin listed out its main and auxiliary engines for ALL its vessels in its vessel spec, unlike some of its competitors who did not give a full disclosure in their vessels spec.
Penguin source its engine mainly from Baudouin, a France company founded in 1918:
http://www.baudouin-engine.com/
and Cummins, a USA company founded in 1919
http://www.cummins.com/cmi/
It also source engines, to a lesser extent, from MTU (Germany) and MAN (Germany).
Though there are engine manufactures nearer in this region, such as Japan (Mitsubishi, Komatsu etc), Korea (Doosan, Hyundai etc) and China (Weichai, Yuchai etc), Penguin preferred to source from far-away places at probably higher costs but presumably better quality. It goes to show that when it comes to quality, Penguin is taking no compromise. I am sure Penguin’s customers will appreciate this in the long run.
Latest Nov13 Crew Boat Market Report by Marcon (a reputed U.S. based shipbroker)…..
http://www.marcon.com/library/market_rep...b11-13.pdf
Though the report is very much on the U.S. crew boat market, a portion (reproduced in full below) of the 2nd para in p1 of the report gives a good idea of the overall international market and Southeast Asia market….
"The offshore market continues to improve or remain steady worldwide. Demand remains strong for both older generation crew boats and new fast crew/supply vessels. Over the last year, the number of older and newer crew boats for sale over 100’ has shrunk, following the sale of a number of boats out of the U.S. domestic market. DP fast crew/supply vessels remain in short supply worldwide on the sale and purchase market due to high utilization. Finding good purchase opportunities in this market remain difficult. Southeast Asia and the Mid-East are also enjoying high utilization with a lack of boats for sale."
Penguin has also strengthened its key executives rank and management team in the past year, and this is evident from the recently updated key executives profile in the corporate website…..
http://www.penguin.com.sg/about-us/corpo...xecutives/
I think of special interest to shareholders/investors is the appointment in Jun13 of Mr. Chew Kia Hoe as General Manager of Group Operations to oversee the Group’s shipbuilding and ship management operations. Mr. Chew possesses close to 20 years of experience in shipbuilding and ship management, specialising in high-speed aluminium craft, and had worked in various supervisory and managerial positions in the construction and operation of crewboats and Fast Supply Intervention Vessels. He holds a UK Bachelor of Engineering Honours Degree in Marine Technology (Small Craft Design) and a Graduate Diploma in Marketing Communications, as well as professional certificates in dynamic positioning, welding technology, safety and risk management. Mr Chew appears to be the perfect man to oversee Penguin's growing shipyard operations, and a very good catch!
In addition, Mr. Philip Chan Ban Eng has been appointed in Nov13 as Deputy General Manager of the Group’s Batam shipyard, PT Kim Seah Shipyard Indonesia. With close to four decades of shipbuilding experience, Mr. Chan is responsible for all production activities in Batam, including production planning, project management and quality control. Mr. Chan had worked as a Production Manager at a Singapore-based aluminium shipyard for close to two decades.
In Sep13, Penguin has also appointed Capt. Adrian Ching Boon Wan as General Manager of the Group’s ship management and crewboat-owning subsidiaries - Pelican Ship Management Services Pte Ltd and Pelican Offshore Services Pte Ltd. Armed with a Class 1 Foreign-Going Master, and with over a decade of seagoing experience and more than two decades in various managerial positions in the offshore support and oil exploration industries, Capt. Ching is responsible for the safe and efficient operation of the Group’s fleet of crewboats, Fast Supply Intervention Vessels and passenger ferries.
Without doubt Penguin is investing more in the all-important key managers/leaders and critical business operation functions - the efficient running of the 2 shipyards and management of its growing charter fleet - to support the continued growth of the 2 related businesses.
I suppose all these and other relevant appointments will be reflected in the coming FY13 AR.
I chose to post the article here. It should be relevant to the company.
(recently vested)
Government committed to supporting Singapore’s maritime hub status
SINGAPORE--The Republic is an ideal maritime hub for companies to access growth opportunities in Asia Pacific at a time when the industry is poised for recovery, and the government here is committed to help the sector develop the necessary infrastructure and talent.
This is according to Senior Minister of State for Finance and Transport Ms Josephine Teo, who reiterated the government’s initiatives on this front when speaking at the opening of the 13th Asia Pacific Maritime (APM) conference today (Wednesday).
“We continue to invest in port infrastructures, well ahead of demand. We’re expanding Pasir Panjang Terminal to increase the capacity to 50 million TEUs per annum, and the first set of new berths will be ready later this year,” she said.
“In the longer term we plan to consolidate our container port operations at Tuas with a capacity of up to 65 million TEUs,” Ms Teo said, adding that the government is supporting productivity growth and innovation in the industry through schemes such as the S$25 million Productivity Programme under the Maritime Cluster Fund.
...
http://www.todayonline.com/business/gove...hub-status
Penguin's share price - last done at $0.164 this morning - has exhibited great resilience since the company announced a set of much improved numbers and the resumption of dividend payment at $0.005/share (for FY13's Final dividend), in its FY13 (ended 31Dec13) full-year results on 21Feb14…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=282780
In fact, Penguin's share price has out-performed the STI todate by a massive over 110% in the past year (since Apr13)…..
https://sg.finance.yahoo.com/q/bc?t=1y&s...1&c=%5ESTI
Based on the strong and earnings increase momentum in the last 3 half-year periods (i.e. since 2H-FY12), and using the latest net profit number from continuing operations for 2H-FY13 at $9.603m (giving an EPS of $0.0145 for 2H-FY13), I believe it is reasonable to expect Penguin to raise its full-year EPS for FY14 (ending 31Dec14) to at least $0.03 (from FY13's EPS at $0.0249). If this comes true, Penguin's projected NAV/share as at 31Dec14 would be at least $0.193 (after adjusting for the declared $0.005/share FY13 Final dividend payment). Shouldn't Mr Market be willing to price the Penguin share at a premium over its latest (as at 31Dec13) NAV/share at $0.0168, bearing in mind that the group's future earnings are quite assured, as contribution from the group's enlarged charter crew boat fleet is expected to increase further. I hope Penguin's BOD and management would be shedding some light on the group's business outlook and future earnings trajectory in the coming AR.