Penguin International

[CityFarmer]

As far as I know, there is no broker covering this gem, and I wonder why? Maybe they are quietly trying to acquire a meaningful stake before issuing a report.

With Q1'14 net profit already forming 44% of FY'13 net profit, and with the continue strength in the offshore OSV market plus its oncoming expanded capacity to capture this opportunity, FY'14 looks set to be another good year. EPS will likely be more than 3c this year. Assuming 10X PE, which is the valuation given by some brokers to Nam Cheong, Penguin should trade above $0.30c.

I do also wonder why no broker covering this stock, with popularity of O&M sector

The company business is on crewboat, rather on OSV, IIRC. The growth of the company business seems just started, and more will come, IMO.

The business model is sustainable, with its builder-owner-operator roles. The continue improvement of Flexes lineup also make the company a default choice for crewboat.

(vested)