Penguin International

[CityFarmer]

Strong start today

An one-liner post focuses only on market movement, is highly undesirable in VB. Furthermore it is due to a transaction of 100 shares.

Please take note.

Regards
Moderator

[Behappyalways]

For those vested there was a write up by The Edge Singapore on Penguin in their latest issue.

[CityFarmer]

For those vested there was a write up by The Edge Singapore on Penguin in their latest issue.

The article was written based on info from Penguin's suppliers, and customers. It is definitely an interesting perspective, rather than from the company management. 

I guess, it is the first article on company, from customers, and suppliers perspective, in The Edge, IIRC

(vested)

[LocalOptimal]

For those vested there was a write up by The Edge Singapore on Penguin in their latest issue.

The article was written based on info from Penguin's suppliers, and customers. It is definitely an interesting perspective, rather than from the company management. 

I guess, it is the first article on company, from customers, and suppliers perspective, in The Edge, IIRC

(vested)

I gotten hold of the article through a friend as well.  I like the words printed at Penguin and I think it clearly represents what the shareholders should do now. 

Vested and recently added at 12 cents.

[CY09]

http://www.penguin.com.sg/vessel-specs/

Noticed Penguin's wholly owned subsidiary lists the vessels it has and may be a good way to track the internal building of boats for it.

IIRC, Pelican Gem was the 100th vessel built by the yard and was delivered in July 2015. So judging by the order of boats on the website, Pelican has added maybe 3 more crewboats this quarter and are now trying to charter/sell it. Penguin has 14 boats it is trying to charter/sale and it plans to add the new version of Flex-25 CAT.

I think Penguin is likely to generate negative free cash flow again this quarter.

[CityFarmer]

Mr. Market is unlikely re-rating the company, base on ONLY the current oil price trend. May be the upcoming 3Q result is a very favorable one. Let's see...

(vested)

[CY09]

Do hope the 3Q result is good. Hopefully inventories will fall from its current high levels. It will free up cash which will be essential for Penguin to tide through 2016.

<vested>

[CityFarmer]

Do hope the 3Q result is good. Hopefully inventories will fall from its current high levels. It will free up cash which will be essential for Penguin to tide through 2016.

<vested>

I am more concern on receivable, and payable, rather than inventories. A high in inventories, may mean high order book. Healthy receivable and payable, mean healthy cash flow, which is important to survive amid the storm.

One other importance, is the disposal of existing vessels, IMO

(vested)

[CY09]

Penguin's 2Q results showed a total receivable of approx 12M against its 2Q revenue of 22.2 Mil (1H rev: 58.08 Mil). Its receivable at end of Fy 14 was 23.5 mil.
Its trade payable is 45M against 50Mil at end of FY 14.

Overall it shows quite a good cash mgmt by the company in the receivables and payable area.

I agree what is worrying is the disposal of existing vessels. As mentioned in my earlier post, it is likely Penguin has added more ships to its pelican subsidiary and from the website, it seems they have successfully sold/charter 1 of their vessel in the past 1 month; leaving 13 vessels for charter or sale.

What has been worrying me as well is the high level of inventory kept on balance sheet. As mentioned by dydx, the building time of Penguin's vessel is approx 6 months and I understand Penguin has lengthened the building time. Penguin has been holding a high level of inventory (56.77Mil as of 31/12/2014) since end Dec 14. Hence by this 3Q results, inventories should start to significantly fall from current level of 69Mil. Hopefully it does not mean a further rise in PPE.

[CityFarmer]

Penguin's 2Q results showed a total receivable of approx 12M against its 2Q revenue of 22.2 Mil (1H rev: 58.08 Mil). Its receivable at end of Fy 14 was 23.5 mil.
Its trade payable is 45M against 50Mil at end of FY 14.

Overall it shows quite a good cash mgmt by the company in the receivables and payable area.

I agree what is worrying is the disposal of existing vessels. As mentioned in my earlier post, it is likely Penguin has added more ships to its pelican subsidiary and from the website, it seems they have successfully sold/charter 1 of their vessel in the past 1 month; leaving 13 vessels for charter or sale.

What has been worrying me as well is the high level of inventory kept on balance sheet. As mentioned by dydx, the building time of Penguin's vessel is approx 6 months and I understand Penguin has lengthened the building time. Penguin has been holding a high level of inventory (56.77Mil as of 31/12/2014) since end Dec 14. Hence by this 3Q results, inventories should start to significantly fall from current level of 69Mil. Hopefully it does not mean a further rise in PPE

I agree so far, the receivable and payable remain healthy. The receivable cycle is lower in FY2014, comparing with FY2013, means the management has managed to tighten the customer credit, rather than lengthen it, which is good. The payable cycle is longer, in the same period, means suppliers are confident to give longer credit line to Penguin, which is also good. I reckon, the first sign of deterioration in biz confidence, both from customers and suppliers, will be shown in the receivable and payable cycle, thus the important, IMO

 What if order has piled up in 3rd-Q, which will be reflected in a surge in inventories?