Penguin International

[Big Toe]

Good discussion. It can be a long time before one is proven right or wrong about a particular company.
A company with stable earnings can have depressed share prices (ie a decade) before share prices starts to move.
Ultimately the dividends(if any) will catch up and tangible value of the company goes up. The shares prices have no choice but to go up.

In a similar way, a company(usually unicorns) with ever mounting losses can have a long run way before shareholders and investors starts throwing in the towel and stops providing funding. And during this time, the valuation can reach dizzy heights.

How much a company is worth depending greatly on who is valuing it. Uber is going public, i have a feeling if the bankers can somehow value it at a trillion, they would. Now it is at around USD100B. Quote from the NY times. "Even at $90 billion to $100 billion, Uber would be valued well above the $76 billion it was appraised at in its most recent fund-raising in August. Investment bankers last year reckoned the company could fetch a valuation of as much as $120 billion in the public markets."

[mkmk]

https://www.reddit.com/r/singapore/comme..._operator/

In case you are unable to view the thread:

The ferry ride between SAF Ferry Terminal and Tekong Ferry Terminal does give back memories to those that have went through BMT. Ferry back into Tekong was the most dreadful ride but the trip back to mainland felt like we were entering heaven from hell.

Penguin & SINDO ferry, the ferry operator that have been doing the SFT-TFT ferry shuttle for quite some time, will be handing over their ferry operations to Eng Hup Shipping, which will be taking over operations from 1 May 2019. No more "ferry to Batam" feels anymore eh?

Eng Hup will be operating the ferry shuttle with their new ferries. Their new ferries, Eng Hup Argo and Navis, are spotted to be doing test runs between SFT and TFT before taking over the operations.

[chialc88]

Thanks valuebuddy mkmk for highlighting that
1st May 2019 Eng Hup Shipping will take over from Penguin on Tekong ferry.

This will definitely impact Penguin ship chartering business,
like what valuebuddy karlmarx says previously:

I suppose you are referring to Penguin's ship chartering segment.
While this is separate from the shipbuilding segment, 
they are primarily driven by the same market forces; 
demand for, and supply of, vessels. 
Chartering, while often perceived as a more stable source of income,
is also exposed to market forces when the lease expires.

I don't suppose anyone will buy more Penguin due to the news.
I think most valuebuddies will do nothing
and some might take action to sell.

What about you?

[karlmarx]

Penguin's ferry to Tekong definitely brings back memories.

I wonder whether shareholders were aware of this, since the contract must have been awarded some time back.

I also wonder how much impact there is to revenue/profit. Perhaps it isn't material.

[TerryT]

I can’t seem to find announcement or news, except following post by Sam engineering,


“[color=rgba(0, 0, 0, 0.74902)]On 3rd April, we delivered Eng Hup Navis & Eng Hup Argo. These vessels will ferry our soldiers to & fro the SAF Changi Ferry Terminal/Pulau Tekong, capable of cruising at 22 knots!”[/color]


https://www.linkedin.com/company/sam-aluminium

[dydx]

About Penguin losing the ferry service contract with SAF transporting soldiers between Tekong Ferry Terminal and SAF Ferry Terminal at Changi to Eng Hup, what's the point of doing such 'national service' business if there is little or no profit? Wouldn't it be better to redeploy the capital employed to some other businesses which provide a better return?

[CY09]

I think one step is jumped in the above thought: "Is the service contract with SAF of little or no profits"?

This has to be verified and pouring through the annual reports there are no clear cut evidence to the above

[Squirrel]

Anyone going to the AGM? I guess this is a question that can be posted at this occasion.

[lonewolf]

My guess would be that the loss of SAF ferry service contract is probably not going to be material or significant.

If so, they will be required to make an announcement. Failure to do so if the contract is a significant part of their earning will surely constitute a breach of fiduciary duty on the part of the BOD.

[luckystar]

Seems like market is cheering the news of Penguin giving up on this Tekong ferry services.