Penguin International

[Dosser]

With a fast-enlarging revenue base growing at 56% YoY, and increasing profitability as measured by PBT growing at an even faster rate at 98.5% YoY and by a PBT Margin reaching a high 20.5% in the first 9 months, quite clearly Penguin is the most prolific ship/boat builder listed on SGX…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=323397

I suppose with current FY's EPS running at $0.05, and backed by a positive outlook, Mr Market should be motivated to do his usual trick in revaluing the Penguin stock towards its justified fair value.

With an anticipated 5 cents per share EPS for current FY, should we expect a 1 cent dividend, instead of 0.5 cent per share previously, or more?

(happily vested together with fellow shareholders here)

While the results are excellent, not confident about a large end of year dividend. For the last 9 months, despite generating nearly $25m in profit, cash and cash equivalents have reduced by about $2m. Over $20m is represented by increases in inventories, receivables, deposits and prepayments. With a business that has grown its revenue by 56% YoY, there are bound to be large increases in these items. The increase in receivables, at 94%, needs watching. Cash has also been used for investment in new facilities, taxes and the previous dividend. While the company still has a generous cash buffer, being too generous with dividends at a time of rapid growth may not be the best policy - the money may be better retained in the company at this stage than returned to shareholders. I'd be happy with 0.5 cent, very happy with 1 cent, concerned if it was more than that.