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Penguin International
29-07-2020, 03:06 PM.
Post: #1301
RE: Penguin International
(29-07-2020, 02:12 PM)weijian Wrote:
(29-07-2020, 11:02 AM)Squirrel Wrote: Its that time of the season again. Personally, its an interesting exercise to hazard a guess on what the company's result would be like. Just sharing here what my thought process is like.

For the coming 1H 2020 results am guessing the following results.

Revenue $59.2m
Net Income +$3.5m

The above is pretty much assuming a slowdown in shipbuilding, and a dampening in chartering rate as per reflected in the AGM Q&A. This is still being buffered up with pre Covid 19 orders including the SATV that was delivered in 1H2020.

Right or wrong, am expecting a further slowdown in 2H2020. I have reduced holdings on this company to rotate to perceived higher growth counters. It's all opportunity cost right? With this crisis, it is less likely for the company to distribute a significant portion of its cash pile, and what that would only mean is that dividend returns on the security is being diluted by cash hanging on its balance sheet. There is indeed a lot of cash, but just unlikely to unlock in the near future. Just thought that I should share with people what I am doing with the shares.

hi Squirrel, I presume you are not looking for some social proof, or is it? Smile

Hi Weijian

What does social proof mean? Sorry not familiar with the term.

My reasoning is simple. I kinda started reviving the thread on this company a while back and bought into it. Along the way, people might have read what I have written and might or might not have factor them into their investment decision. I feel that I should at least let people know that I have exited a substantial portion of my holdings. I understand that forummers here don’t just buy or sell based on posts but I just feel that’s what I should do rather than just go quiet on it.

I did the same with Best World when I sold it.

Would there be issues with forum rules on this approach?
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Please do your own due diligence. Any reliance on my posts is at your own risk.

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29-07-2020, 05:56 PM.
Post: #1302
RE: Penguin International
@Squirrel, looking for social proof simply means looking for someone to confirm your action/thought, that is about it. It is done by publicly displaying your thought/action and then looking for people to agree with you or disagree (and ironically, your own views get strengthened by disagreeing views as well).

There is also no issue with your approach and it is a good thing actually. But you probably guessed and said it for yourself that it doesn't really matter on VB.com. Smile

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29-07-2020, 07:08 PM.
Post: #1303
RE: Penguin International
(29-07-2020, 05:56 PM)weijian Wrote: @Squirrel, looking for social proof simply means looking for someone to confirm your action/thought, that is about it. It is done by publicly displaying your thought/action and then looking for people to agree with you or disagree (and ironically, your own views get strengthened by disagreeing views as well).

There is also no issue with your approach and it is a good thing actually. But you probably guessed and said it for yourself that it doesn't really matter on VB.com. Smile

Just in case. You never know when someone might get infatuated with my stock picks. Big Grin
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Please do your own due diligence. Any reliance on my posts is at your own risk.

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03-08-2020, 08:56 AM.
Post: #1304
Rainbow  RE: Penguin International
Thanks Bro.
Your sharing of Bestworld since 2017 and Penguin since 2018 is definitely well appreciated.

Congratulations on these excellent picks and wish that you're able to uncover more gems in this strange market too.

Like you, I had sold Bestworld and Penguin too.

Enjoy:


Wear your mask and keep your social distance, please.
Heart

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06-08-2020, 07:46 PM.
Post: #1305
RE: Penguin International
Penguin posts 53.2% drop in H1 earnings amid Covid-19, weak oil prices

https://www.businesstimes.com.sg/compani...oil-prices

THE net profit of Penguin International, which builds high-speed aluminium craft, plunged 53.2 per cent to S$3.9 million for the six months ended June, hit by the double whammy of the Covid-19 pandemic and weak oil prices.

The mainboard-listed company’s H1 revenue fell 26.1 per cent to S$50.1 million. Revenue from shipbuilding, ship repair and maintenance was down 28.8 per cent to S$39.2 million, due mainly to fewer stock vessels sold. Income from the chartering segment fell 15 per cent to S$10.9 million, given a decrease in chartering activities. Gross profit correspondingly fell 32.9 per cent to S$12.6 million.

The topline shrinkage was softened by a 61.8 per cent rise in other operating income to S$5.8 million, arising from the sale of more vessels from the Penguin’s operating fleet, as well as S$1.7 million in Covid-19 business-support schemes from the Singapore government.

Net operating cash outflows for H1 stood at S$9.4 million, used mainly for shipbuilding. The company had generated net operating cash inflows of S$12.5 million in the same period last year.

In H1, Penguin built six new vessels, of which three were for stock and chartering, and the remainder, built to order.

But operating conditions remain tough. Penguin noted that demand for new vessels in H1 had weakened, while crewboat charter rates and utilisation rates fell. While none of its clients have terminated any shipbuilding contract, some vessel deliveries have been delayed by mutual agreement.

The lockdown of foreign workers’ dormitories in Singapore also affected in-house and subcontracted labour, delaying internal newbuilding projects for its chartering fleet. As at Thursday, all of Penguin’s in-house foreign workers were back to work, but most of its subcontracted foreign workers were still under lockdown.

To conserve cash, Penguin has now halted or slowed down some of its uncommitted build-for-stock vessels. All committed build-for-stock and build-to-order vessels are still being completed as scheduled.

Penguin has also obtained and drawn down on a S$5 million unsecured term loan under Enterprise Singapore's Temporary Bridging Loan Programme.

The company said: “Notwithstanding the challenges, the group is still working hard to secure new build-to-order projects across various market segments, as it expands its geographical reach. The Batam shipyard is currently building various types of vessels for ship owners from South-east Asia, Australia, North Asia, Africa and Europe.”

Shares of Penguin closed flat at S$0.44 on Thursday.

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07-08-2020, 08:13 AM.
Post: #1306
RE: Penguin International
Wow, worse than expected. Hopefully they can get past this. Its noted that they are putting more into inventory and thus drawing down on cash. If this is over, they are well positioned to take up more market share with ready stock.
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Please do your own due diligence. Any reliance on my posts is at your own risk.

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