Penguin International

[CityFarmer]

The first crew boat delivery in this year 2015 was a Flex-40SL - Penguin's 83rd Flex - delivered on 15Jan15.

Based on the info provided in the Shipyard Services page from the company's website…..
http://www.penguin.com.sg/our-services/s...-services/
Penguin has "more than 40 crewboats scheduled for delivery in 2015", and
"In 2015, we will deliver our 100th Flex crewboat, which will join a global family of Flexes, from Asia to Africa."

So the new crewboat business in 2015 does appear rock-solid still. Of course, we should not forget about Penguin's Offshore Charters and Ferry Operations divisions, which should continue to make at least decent contributions.

A back-of-the-envelop estimation on boat-building business in 2015, base on the targeted number of crew-boat in 2015.

In FY2013, the annual production of crew-boat, was slightly above 20, a targeted of at least 40 in FY2015, means double the FY2013 boat-building revenue of about 81 mil, i.e. 162 mil.

One common concern on Penguin, is the lower oil price. IMO, the lower oil price might benefit Penguin's chartering business. One of the substantial cost of chartering service, is the fuel expense. The lower oil price might benefit long-term chartering contracts.

We should be able to see a better FY2015, with sales of above $200 mil, IMO

(vested)

[Stephentoh]

This could be one of the potential questions to be raised in the coming AGM about the sale of the boat and what would be the possible actions that the management will embarking on with regards to the challenging oil industry outlook. Penguin is a subsidiary of sembcorp, personally I am quite certain that the boat delivery will be in line to the expectation of many since my going to be father in law is one of the independent director of penguin.

[yawnyawn]

This could be one of the potential questions to be raised in the coming AGM about the sale of the boat and what would be the possible actions that the management will embarking on with regards to the challenging oil industry outlook. Penguin is a subsidiary of sembcorp, personally I am quite certain that the boat delivery will be in line to the expectation of many since my going to be father in law is one of the independent director of penguin.

Is Penguin a subsidiary of Sembcorp? From the AR, i understand that Keppel Corp owns 6.24% of Penguin and that's it. Kindly direct me to the source that you read that says Penguin is a subsidiary of Sembcorp. Thanks!

The only guy that comes close to having any relations with Sembcorp is Mr. Chan Moon Kong who is the independent director of Penguin which i assume is your going-to-be FIL

[bear]

This could be one of the potential questions to be raised in the coming AGM about the sale of the boat and what would be the possible actions that the management will embarking on with regards to the challenging oil industry outlook. Penguin is a subsidiary of sembcorp, personally I am quite certain that the boat delivery will be in line to the expectation of many since my going to be father in law is one of the independent director of penguin.

Hi Stephen:

There have been business transactions and other kinds of informal connections between Sembcorp and Penguin in the past.In the 1990s when Sembcorp sold their stakes in Auto Batam Ferries' to Penguin Boat International.
Besides,looking at the profiles of some of the managers it can be seen that they were previously from Sembcorp Industries/Keppel,and with people like your father-in-law who is at senior management level in a marine company like Sembcorp (my guess) being directly involved at the board meetings as an independent director it is easy to be mistaken that Penguin is a subsidiary of Sembcorp. However it is not from what I know.

http://www.tradewindsnews.com/weekly/163...to-ferries

[Stephentoh]

This could be one of the potential questions to be raised in the coming AGM about the sale of the boat and what would be the possible actions that the management will embarking on with regards to the challenging oil industry outlook. Penguin is a subsidiary of sembcorp, personally I am quite certain that the boat delivery will be in line to the expectation of many since my going to be father in law is one of the independent director of penguin.

Is Penguin a subsidiary of Sembcorp? From the AR, i understand that Keppel Corp owns 6.24% of Penguin and that's it. Kindly direct me to the source that you read that says Penguin is a subsidiary of Sembcorp. Thanks!

The only guy that comes close to having any relations with Sembcorp is Mr. Chan Moon Kong who is the independent director of Penguin which i assume is your going-to-be FIL

This could be one of the potential questions to be raised in the coming AGM about the sale of the boat and what would be the possible actions that the management will embarking on with regards to the challenging oil industry outlook. Penguin is a subsidiary of sembcorp, personally I am quite certain that the boat delivery will be in line to the expectation of many since my going to be father in law is one of the independent director of penguin.

Hi Stephen:

There have been business transactions and other kinds of informal connections between Sembcorp and Penguin in the past.In the 1990s when Sembcorp sold their stakes in Auto Batam Ferries' to Penguin Boat International.
Besides,looking at the profiles of some of the managers it can be seen that they were previously from Sembcorp Industries/Keppel,and with people like your father-in-law who is at senior management level in a marine company like Sembcorp (my guess) being directly involved at the board meetings as an independent director it is easy to be mistaken that Penguin is a subsidiary of Sembcorp. However it is not from what I know.

http://www.tradewindsnews.com/weekly/163...to-ferries

Hi yawn yawn and bear,
Sorry I might have used the wrong word, its not a subsidiary but a working partner now with Sembcorp (Sembmarine to be precise), apologies for stirring misunderstanding, Sembmarine used to have a stake under penguin but not now, however they are still working and seeking each other advise on certain issues.

I cant divulge much about who is my FIL but i am sure anybody can make an intelligent guess. I also cant provide much more details about how Penguin's results would be in the 2015 to avoid speculations, but instead we should focus on the fundamentals in which penguin is clearly well positioned to deliver. Looking at the conservative nature of the management, its ability to exploit its ship building capabilities to strengthen its earning power and not being a popular pick in the market, this provides a good basis that Penguin have much more value to extracted from in terms of the business and the share price. Personally i feel that management could do more to provide confidence to its shareholders, if any vested buddies were to attend the coming AGM, it will be great to voice out your concerns to the board I am sure they will be willing to answer your queries, be it openly or privately.

[BlueKelah]

ask them to show order book and increase dividend at AGM. Their response to that will show a lot. hahaha...

[Stephentoh]

ask them to show order book and increase dividend at AGM. Their response to that will show a lot. hahaha...

Valid concern, any other dying hard issues other buddies would want to raise in the AGM? I could consolidate and pass it to my younger friend who will be attending and will be able feedback to you guys on the outcome.

[xlandjy]

ask them to show order book and increase dividend at AGM. Their response to that will show a lot. hahaha...

Valid concern, any other dying hard issues other buddies would want to raise in the AGM? I could consolidate and pass it to my younger friend who will be attending and will be able feedback to you guys on the outcome.

Since you FATHER IN LAW as an ID of the company, I would suggest that you ask him to advise the Management to do a management buy out.

I am not just shooting off my mouth. Look at the way that the company operates.. It does not behave like a normal listed company. It is afraid of the lime light and prefers to work undercover/total secrecy.

For the past few years, it has not actually invited any analyst to visit the company or has conducted any briefing for the investment community. It shares minimum information with its shareholders. It refused to declare a dividend policy and etc...

Under such circumstances... it would be better for the majority shareholders/management to do a management buy out. Offer me 0.25 I will throw all my holdings to them. Vested.

[Ben]

ask them to show order book and increase dividend at AGM. Their response to that will show a lot. hahaha...

Valid concern, any other dying hard issues other buddies would want to raise in the AGM? I could consolidate and pass it to my younger friend who will be attending and will be able feedback to you guys on the outcome.

Since you FATHER IN LAW as an ID of the company, I would suggest that you ask him to advise the Management to do a management buy out.

I am not just shooting off my mouth. Look at the way that the company operates.. It does not behave like a normal listed company. It is afraid of the lime light and prefers to work undercover/total secrecy.

For the past few years, it has not actually invited any analyst to visit the company or has conducted any briefing for the investment community. It shares minimum information with its shareholders. It refused to declare a dividend policy and etc...

Under such circumstances... it would be better for the majority shareholders/management to do a management buy out. Offer me 0.25 I will throw all my holdings to them. Vested.

I respect your opinion but cannot agree with you. We all know the management is low profile, and i am okay with it, because i am comfortable with their style and i believe their integirity. One day when they start drumming up their share price, like inviting analysts to cover the company instead of concentrating on running the biz, i will be worried. It is also not right to say the mgmt is SH unfriendly. Last year during the AGM, they organised a plant tour at the request of SH. Those who attend the meeting will know. They could easily turn down the request but they didn't . I though that was a nice gesture.

Jeffrey is the largest SH, any increase in dividends will benefit him the most. James also has a few million shares. Despite this they are careful with dividends. I like that.
Yes, the company is not too open about its order book. I believe they have their reasons for doing that. However, if one study its AR in details, and read some comments in this forum, one would have a rough idea of its prospect.

So i m happy with the company and the mgmt and i hope no GO for this little gem.

[CityFarmer]

ask them to show order book and increase dividend at AGM. Their response to that will show a lot. hahaha...

Valid concern, any other dying hard issues other buddies would want to raise in the AGM? I could consolidate and pass it to my younger friend who will be attending and will be able feedback to you guys on the outcome.

Since you FATHER IN LAW as an ID of the company, I would suggest that you ask him to advise the Management to do a management buy out.

I am not just shooting off my mouth. Look at the way that the company operates.. It does not behave like a normal listed company. It is afraid of the lime light and prefers to work undercover/total secrecy.

For the past few years, it has not actually invited any analyst to visit the company or has conducted any briefing for the investment community. It shares minimum information with its shareholders. It refused to declare a dividend policy and etc...

Under such circumstances... it would be better for the majority shareholders/management to do a management buy out. Offer me 0.25 I will throw all my holdings to them. Vested.

I respect your opinion but cannot agree with you. We all know the management is low profile, and i am okay with it, because i am comfortable with their style and i believe their integirity. One day when they start drumming up their share price, like inviting analysts to cover the company instead of concentrating on running the biz, i will be worried. It is also not right to say the mgmt is SH unfriendly. Last year during the AGM, they organised a plant tour at the request of SH. Those who attend the meeting will know. They could easily turn down the request but they didn't . I though that was a nice gesture.

Jeffrey is the largest SH, any increase in dividends will benefit him the most. James also has a few million shares. Despite this they are careful with dividends. I like that.
Yes, the company is not too open about its order book. I believe they have their reasons for doing that. However, if one study its AR in details, and read some comments in this forum, one would have a rough idea of its prospect.

So i m happy with the company and the mgmt and i hope no GO for this little gem.

I concur.

I am also comfortable with the style. I agree the company has little concern on "Mr. Market opinion". It can be a good thing. I will rather the company focuses on sales/profit growth, rather than share price growth.

Eventually Mr. Market will see the sales/profit growth, and reacts accordingly, without any "drum-up". It has already happened, base on the last 3 years share price performances.

(vested)