Penguin International

[ValueMushroom]

Thank you value buddies here for sharing.

One more question, usually what is the discount rate you will apply to shipping assets like Penguin's ferries and crewboats, is 50% overly harsh? : )

[CityFarmer]

Thank you value buddies here for sharing.

One more question, usually what is the discount rate you will apply to shipping assets like Penguin's ferries and crewboats, is 50% overly harsh? : )

Penguin shipping asset has been regularly disposed with profit. The profit is accounted as other operating income, in million S$.

Instead of discount, I applies a premium on the Penguin's shipping asset in my valuation.

(vested)

[Stephentoh]

I wonder who is the major party who have been constantly selling these few weeks , is there any portal to track the buy/ sell parties? But given the current share price now it have became very attractive to me and queueing in to get a piece of pie too. Just that do anybody know is penguin profiting from their contract with Mindef? I couldn't seem to find this info in the Internet, I understand the bulk of the profits comes from their offshore services and boat building . Thanks


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[dydx]

I find the following 12Jan15 report by The Maritime Executive interesting…..
http://www.maritime-executive.com/magazi...d-the-pond
In particular, the section under the heading "The Small Boat Market" gives a clear description on Penguin's market niche and strong position.

I believe the last para (reproduced in full below) gives quite a good indication on Penguin's business volume and financial fortune going forward in 2015 and beyond.....
"The company introduced the Flex series in 2006 and builds almost all its crewboats without orders, using its internal cash reserves. “We will roll out our 100th Flex crewboat by mid-2015, and we intend to deliver 40 to 50 crewboats a year for our own fleet and for others,” adds Tham."

[CityFarmer]

I find the following 12Jan15 report by The Maritime Executive interesting…..
http://www.maritime-executive.com/magazi...d-the-pond
In particular, the section under the heading "The Small Boat Market" gives a clear description on Penguin's market niche and strong position.

I believe the last para (reproduced in full below) gives quite a good indication on Penguin's business volume and financial fortune going forward in 2015 and beyond.....
"The company introduced the Flex series in 2006 and builds almost all its crewboats without orders, using its internal cash reserves. “We will roll out our 100th Flex crewboat by mid-2015, and we intend to deliver 40 to 50 crewboats a year for our own fleet and for others,” adds Tham."

To supplement the post, with few historical numbers.
- The 50th Flex crewboat was achieved in 2013, and the 100th will be achieved in 2015
- In 2013, the yearly production of crewboat is >20, and the target for 2015, is 40-50

In summary:
- It took 7 years for the first 50th, but only 3 years for the next.
- The boat-building segment revenue was 137 mil in FY2013, thus estimated revenue in FY2015 is about 170 mil. Together with chartering revenue, total revenue is estimated as around 200 mil in FY2015, a growth of >20%.

(vested)

[valuebuddies]

What is the rational for building so quickly, IF demand is not increasing in tandem? Unless if Penguin discloses contracts they won, speeding up the building process doesn't mean revenue growth.

[odd lots vested]

[dydx]

What is the rational for building so quickly, IF demand is not increasing in tandem? Unless if Penguin discloses contracts they won, speeding up the building process doesn't mean revenue growth.

[odd lots vested]

I suppose you can quite easily find your own answers by reading the following earlier 22Nov14 report by The Maritime Executive based on an interview with Penguin's CEO James Tham, carefully…..
http://www.maritime-executive.com/featur...2014-11-22

[CityFarmer]

The customer orders are there, with its ratio of external sale stands >80% in FY2014, and more than half in all previous years.

Why no order book disclosure? I don't know. I am taking the WIP in inventory as "order book", which is only disclosed yearly. I reckon the reasons may be most orders can be fulfilled in few months, and market competition.

(vested)

[xlandjy]

What is the rational for building so quickly, IF demand is not increasing in tandem? Unless if Penguin discloses contracts they won, speeding up the building process doesn't mean revenue growth.

[odd lots vested]

I suppose you can quite easily find your own answers by reading the following earlier 22Nov14 report by The Maritime Executive based on an interview with Penguin's CEO James Tham, carefully…..
http://www.maritime-executive.com/featur...2014-11-22

I am really puzzled... the tone of the interview with Tham was quite positive. Very much more positive than what was mentioned in the latest quarterly report.

My second puzzle is the substantial in Forex... Why are they involved so much in forex and made the company suffered a loss in forex dealings... Why?

[CityFarmer]

I am really puzzled... the tone of the interview with Tham was quite positive. Very much more positive than what was mentioned in the latest quarterly report.

My second puzzle is the substantial in Forex... Why are they involved so much in forex and made the company suffered a loss in forex dealings... Why?

I reckon the same or similar messages will be communicated in coming AR for FY2014.

Are you referring to forward currency contracts? In AR2013 page 88

"Forward currency contracts are used to hedge foreign currency risk arising from the Group’s sales denominated in USD"

Hope the puzzles cleared...