Penguin International

Share price wise, so far Penguin has advanced a solid 84.9% in the last 12 months, from $0.073 at the close of 31Dec12, to $0.135 at the close of 24Dec13 (last Tuesday). Relative to the SGX market average, on share price alone Penguin has outperformed the STI by close to 80% YTD…..
http://finance.yahoo.com/q/bc?t=1y&s=P13...5Esti&ql=1

Relevant questions: Will Penguin's share price continue to advance? If so, potentially by how much more?

From Penguin's latest 3Q (ended 31Sep13) results…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=263089
I guess we can reasonably expect that Penguin will likely post a full-year EPS of approx. $0.021 (extrapolated from the YTD 3Q's EPS of $0.016) and end FY13 with a NAV/share of approx. $0.164 as at 31Dec13 (vs. $0.1594 as at 31Sep13). Based on these 2 basic measurements alone, I guess we can reasonably conclude that Penguin at the last done share price of $0.135, Mr Market is still not over-pricing the counter. On the other hand, Mr Market may well be grossly under-pricing the counter still, if penguin has the potential to raise its recurrent earnings by a big margin to a substantially higher yearly EPS in the range of say $0.04 to 0.05 in the coming few years.

If the above assumption comes out as true, I guess given enough time Mr Market should be willing to price Penguin - at least - at a reasonable premium over its latest NAV/share.

In my opinion, Penguin is still a gd stock to hold. Valuations are not rich at the moment. So far, there is no analyst coverage. I am sure Mr Market will recognise its fair value in due course.

Vested

It is not unrealistic to assume Penguin EPS will increase by double digit in 2014, given the robust offshore market and Penguin efforts in enlarging its chartering business, which command a high margin (>50%) at today's rate. Beside that, Penguin has in excess of $40 million in cash as at end of Q3'13, and zero debts. I am curious as to what the company plans to do with its huge cash hoard. Pay some of it as dividends or expand its capacity, or both?

Penguin last dividend payout was in 2007 despite it has been building up cash over last 2 years. I believe management is likely to use its cash reserves for biz or capacity expansion. I consider this a gd move especially interest rates will go up soon. A financially strong company with no debts!

Total volume transacted for today (26 Dec 2013) was a high of 10,570 lots, and Penguin closed up $0.009 or 6.7% at $0.144.

I wonder is this the result of traders/punters, spilling over from Vallianz, speculating the share price? I understand that Vallianz operate in a similiar industry with Penguin.

From their website, Vallianz Holdings Limited, is a vessel and equipment owning company listed on the SGX-Catalist, providing marine support services, primarily vessel ownership, leasing and fleet corporate management since our transformation in August 2010.

In line with our business transformation since August 2010, we are now focused on our goal of building ourselves as a marine support service company to the offshore oil and gas industry.

(vested)

Shipbuilders, and offshore marine support GENERALLY enjoying a 'rally'. It's like a big wave lifting everyone up.

Check out, Charisma Energy, Otto Marine, Jasper, Viking, Vallianz. I am personally invested in Vallianz since 8 cts since I found it is fundamentally sound and it has very strong support from Swiber and Rawabi.

By chance I looked into the website of Miclyn Express Offshore Ltd (MEO) - previously listed on ASX, and delisted since Dec13 after a successfully privatisation GO by controlling shareholders - which is a leading provider and charterer of service vessels of a diverse range (including Offshore Support Vessels, Crew/Utility Vessels, Tugs, Barges and Coastal Survey Vessels) to the expanding offshore oil and gas industry across South-East Asia, Australia and the Middle East, and has its HQ based in Singapore…..
http://www.miclynexpressoffshore.com/about-us

More interestingly, MEO owns and charters out over 60 crew/utility vessels in a long listing…..
http://www.miclynexpressoffshore.com/our...ty-vessels
After a closer look into the details of the listing, I have noted that as many as 18 vessels under the "Express" name series - from vessel "Express 58" (built in 2007) to vessel "Express 76" (built in 2013) - belong to the Flex-36 and Flex-38 ranges built by Penguin. I think it is also relevant to note that these vessels comprised the newer ones in MEO's fleet or the listing, and also the majority share of the total vessels added during the recent years.

I suppose it is reasonable to conclude that MEO is 1 of Penguin's important and long-standing customers, including on the chartering side of the business.

i have observed that Penguin volume has been active lately. Could it be that Jeffrey Hing is finally deciding to consolidate his offshore division into OEL? What will he do will his stake in Penguin?

There are now two directors from Keppel inside this Co. Tay Kim Him who used to run Keppel Brazil is an experienced hand. May be he could help bring in more business for Penguin.

Penguin business is Aluminium craft of FSV so it is a niche that the Keppel might be interested to extend. Or it may decide to sell if there is a good offer.

Penguin has up-loaded the first-ever picture of the new and super-fast (over 30 knots) "Flex-25" crewboat and fast support vessel (also dubbed the "Pocket Rocket") first launched in Sep2013….
http://www.penguin.com.sg/vessel-specs/flex-25/

Penguin has also added/replaced the following new first paragraph in its home page…..
http://www.penguin.com.sg

"It Just Keeps Getting Better In 2014, Penguin Shipyard International will unveil the brand new Flex-40 series, successor to the best-selling Flex-38 series. the new Flex-40 line-up features expanded fuel tanks, larger deck space, a knuckle boom crane, new reclining seats and a host of engineering enhancements. Whether you are fighting pirates in the Gulf of Aden or rushing critical spares to a drilling rig, the new Flex-40 series is the fast and furious solution."

Penguin now has and offers a wide and comprehensive range of crewboats to compete in global market for the longer term - both in the newbuild market, and from its charter fleet vessels for short-to-long term charters and/or for sale, including immediate sale…..
http://www.penguin.com.sg/vessel-specs/
Quite awesome I think!

The Penguin is flying high again today.
up 13% at 6 times average volume.