Penguin International

Analyst report covering Penguin

https://research.sginvestors.io/2019/05/...05-24.html

Delivery of the first new Flex Ferry X! There is also mention of their fifth and sixth shipyard.

“The Flex Ferry X has been delivered to Robben Island Museum in South Africa. Named after the first recorded female political prisoner on Robben Island, Krotoa, the new ferry arrived on 12 July 2019.”

“Penguin is expanding its facilities to accommodate growth in the mid-sized ferry market and to accommodate its Flex vessel construction. It is building its sixth workshop in Batam, which it sees as a sign of “increased shipbuilding activity arising from higher demand for its Flex vessels.”

The company expects its annual production capacity to rise to more than 50 mid-sized vessels with the addition of the fifth workshop.”

https://www.rivieramm.com/news-content-h...-gap-55680

Seems like the shift of focus to replacing offshore helicopters as mentioned in prior annual reports is bearing fruit. They are looking for more employees in their crewing department for seafaring positions. This seem to indicate they are expanding in this area.

“Currently, Penguin has seven Flex-42X’s on charter in Southeast Asia.”

https://www.rivieramm.com/news-content-h...squo-55686

(28-07-2019, 09:15 AM)Squirrel Wrote: Delivery of the first new Flex Ferry X! There is also mention of their fifth and sixth shipyard.

“The Flex Ferry X has been delivered to Robben Island Museum in South Africa. Named after the first recorded female political prisoner on Robben Island, Krotoa, the new ferry arrived on 12 July 2019.”

“Penguin is expanding its facilities to accommodate growth in the mid-sized ferry market and to accommodate its Flex vessel construction. It is building its sixth workshop in Batam, which it sees as a sign of “increased shipbuilding activity arising from higher demand for its Flex vessels.”

The company expects its annual production capacity to rise to more than 50 mid-sized vessels with the addition of the fifth workshop.”

https://www.rivieramm.com/news-content-h...-gap-55680

Seems like the shift of focus to replacing offshore helicopters as mentioned in prior annual reports is bearing fruit. They are looking for more employees in their crewing department for seafaring positions. This seem to indicate they are expanding in this area.

“Currently, Penguin has seven Flex-42X’s on charter in Southeast Asia.”

https://www.rivieramm.com/news-content-h...squo-55686

It will be great for Penguin if the new Flex Ferry X can become yet another volume product, in addition to the current Flex Fighter and Flex-42X models.

Yes, Penguin's website confirms there are now 7 Flex-42X's for charter. http://www.penguin.com.sg/vessel-specs/

Assuming a day-rate of say USD5k, the 7 Flex-42X's potentially can bring in over USD12.0m a year in charter revenue/sales. Such a sustainable revenue stream is not bad at all.

Penguin has announced the 1H results. Looks pretty good at first glance.

https://links.sgx.com/FileOpen/Penguin_1...eID=573193

Maybe I am missing something, or purely lousy market sentiment, the stock has traded down since posting its results.

(06-08-2019, 02:25 PM)Squirrel Wrote: Penguin has announced the 1H results. Looks pretty good at first glance.

https://links.sgx.com/FileOpen/Penguin_1...eID=573193

Maybe I am missing something, or purely lousy market sentiment, the stock has traded down since posting its results.

Very good 2Q/1H results indeed! Do note that Penguin has started to provide detailed revenue numbers of its 2 operating divisions - Shipbuilding/Ship Repairs/Maintenance, and Chartering - in the commentary under Section 8 of the report. 

It is interesting to note that revenue from Chartering is on an upward trend - 2Q's $6800k is +17.9% YoY vs. 2QFY18's $5766k; and 1H's $12797k is +18.2% YoY vs. $10831k - and this is being achieved without an increase in PPE (vessels) balance which is shown in the B/S at $83819k as at 30Jun19 (vs. $86559k as at 31Dec18), confirming fleet utilisation has increased, possibly together with rental rates. So it looks like Chartering as a more sustainable source of revenue, profits and positive cash flow is poised to grow very nicely.

Shipbuilding is definitely not a business for value investing. We do not have much competitive advantage in this area
Frankly, how do you sleep holding Penguin stocks? Come on guys, are you guys really heavily vested in this kind of stock?

I'm not saying that this is what is actually happening here, but it is actually not uncommon for a stock to be loved, cheered, and promoted, by large numbers of people. In fact, all sorts of people promote their self-interest all time, in all forms of media.

Readers always have to be discerning about the content they are reading, and judge the integrity of its source. It is dangerous to assume that everyone is well-meaning, helpful, or even generous, in their 'sharing.' Of course, there are. But you must not assume that to be the case. This is what is taught in schools -- from secondary to tertiary -- but of course, it isn't always applied.

If one suffers as a result of making ill-informed decisions, that's too bad. As much as the 'misleader' may be at fault for providing false/misleading information, the receiver of information is also at fault for not verifying the claims.

Does this mean that a stock promoter should have no qualms about creating hype and interest in their holdings? There is no right or wrong. Everybody has different priorities and values, which is reflected in their actions.

===

As for the merits of Penguin, it has financial stability by having no loans, and appears to have some government support in the form of ship orders. The company is probably quite safe from financial catastrophe, but whether the share price is just as safe, is a separate matter that is decided by the markets.

Thank you Karl for explaining the situation. I get what you mean.

I deliberately write it a nasty way, so that newbies will be more aware of what they are reading.
IMHO, Penguin is not investment grade. And smart people here shouldn't waste time on it. The company is too weak to form a significant portion of your portfolio.

Ship building is a bad business. Gov can support you, but for how long? There's no guarantee on consistent orders.
I am quite shocked that this type of company receive more attention than financial blue chips.

(02-09-2019, 12:02 PM)pencilin Wrote: Thank you Karl for explaining the situation. I get what you mean.

I deliberately write it a nasty way, so that newbies will be more aware of what they are reading.
IMHO, Penguin is not investment grade. And smart people here shouldn't waste time on it. The company is too weak to form a significant portion of your portfolio.

Ship building is a bad business. Gov can support you, but for how long? There's no guarantee on consistent orders.
I am quite shocked that this type of company receive more attention than financial blue chips.

the market has an interesting way of making you look stupid even though you are right. Take it in your stride should that happen. That said, i still like your bluntness

(02-09-2019, 09:11 AM)pencilin Wrote: Shipbuilding is definitely not a business for value investing. We do not have much competitive advantage in this area
Frankly, how do you sleep holding Penguin stocks? Come on guys, are you guys really heavily vested in this kind of stock?

Value, like beauty, is subjective in my opinion. Some see value in property stocks that has potential asset revaluations, some see value in penny stocks trading at low/distress valuations, some see value in high yield/dividend stocks, some see value in a stock simply because it has been beaten down so badly or it has exponential growth still despite seemingly absurd PE ratios. At the end of the day, the list goes on and on but I am of the view that value is subject to interpretation and I don't think we can simply write off a particular stock not qualifying as a value investing stock simply because of the industry it is in. 

In fact, you mentioned financial blue chips as a comparison and I'm sure there are many others that will beg to differ on whether they qualify as value investing stocks as well...

Notwithstanding that you mentioned deliberately writing this post in a nasty way to warn newbies, I don't actually see a need to as I highly doubt any newbie surfing through this forum will buy simply based on a few posts here. 

P.S This is my first post in this Penguin thread and I have never "promoted" this stock but at times, I can only wish that by posting here or in other platforms, I am able to rig the prices of some stocks I am holding