Penguin International

[ghchua]

Hi Reenat,

The previous offer at 83c was deemed "Fair and Reasonable" by the IFA. Obviously, they can come again with the same offer price, and chances are the IFA will deemed it as "Fair and Reasonable" as well.

The problem comes when more minorities accepted the the next offer, resulting in the free float going below 10%. It is a highly possible scenario, since there is only around 11% free float currently.

Then, it will become the Boustead Projects situation when its free float goes below 10%. If they do not restore it, they would have to give a delisting exit offer. Again, the delisting exit offer is not expected to be generous as well, since if the offer is deemed "Fair and Reasonable" by the IFA. Likely to be at the same price.

Therefore, in order to remain listed, minorities must be persistent enough to block out any offers coming ahead because it is very unlikely that they will increase the free float going forward. Otherwise, the risk of delisting is always there.

[dydx]

No official news may be good news in this case. What do we expect the consortium to do? Tell a good story in order to boost the share price for the benefit of the remaining minorities?

Below are some useful updates on the shipbuilding part of the group businesses from LinkedIn:
https://www.linkedin.com/posts/incat-cro...er_desktop
https://www.linkedin.com/posts/incat-cro...er_desktop
https://www.linkedin.com/posts/farra-mar...er_desktop [Note: Penguin is building 13 CTVs for Farra Marine]

[weijian]

Things seem to be stirring up on the seafront for this bird - A great 2H23 with an expanding GPM that amplifies its operating leverage since COGS are the highest% of revenue.

Dividend also improves correspondingly by maintaining similar payout ratio at FY22. And FY22 itself was much better compared to earlier years....

The most intriguing portion of its results...would probably be the sudden surge of contract liabilities:
end FY21: 2.7mil
end FY22: 9.4mil
1H23: 10.8mil
end FY23: 44.8mil

Is this just a temporary duration mismatch OR there a big surge of orders OR more bargaining power with its customers by getting them to pay more deposits?

In addition, loans have increased by ~20mil (or 10% of equity), suggesting some serious working capital needs ahead. After all, inventories turnover is ~200days. 

Matching this working capital increase with the increase in contract liabilities mentioned earlier - Does this suggests that, as long as the macro environment doesn't suddenly change, this bird is ready to fly?

FY23 results:
https://links.sgx.com/FileOpen/Penguin_F...eID=787486

[dydx]

Enjoy following Penguin's business..
https://www.linkedin.com/posts/miclyn-ex...member_ios
https://www.linkedin.com/posts/mpasingap...er_desktop

[pianist]

A full charge in 6min, quite incredibly faster than the ev standards
Or is it not fair compared w ev charging