Penguin International

[dydx]

To dydx: could you elaborate more on the order backlog status. Understand previously the backlog was about a year

We know that so far Penguin does not disclose details on order backlog mainly to protect its business interests. However, a drive to its Singapore yard located at 18 Tuas Basin Link and taking a good look inside will reveal that as many as 5 new boats are under various stages of construction at any point in time. As Penguin is able to produce a new Flex crew boat under 6 months, so we can quite safely assume the Singapore yard is running at about 10 boats a year. The larger yard in Batam has undergone further expansion and added additional facilities upgrades this year and now has 3 covered workshops. More info on Penguin from below 2 recent industry reports…..
http://workboatworld.realviewtechnologie...age0000024
http://durian.quape.com/clients/marine1/...st-victory

[CityFarmer]

To dydx: could you elaborate more on the order backlog status. Understand previously the backlog was about a year

We know that so far Penguin does not disclose details on order backlog mainly to protect its business interests. However, a drive to its Singapore yard located at 18 Tuas Basin Link and taking a good look inside will reveal that as many as 5 new boats are under various stages of construction at any point in time. As Penguin is able to produce a new Flex crew boat under 6 months, so we can quite safely assume the Singapore yard is running at about 10 boats a year. The larger yard in Batam has undergone further expansion and added additional facilities upgrades this year and now has 3 covered workshops. More info on Penguin from below 2 recent industry reports…..
http://workboatworld.realviewtechnologie...age0000024
http://durian.quape.com/clients/marine1/...st-victory

With the Penguin short build-cycle in months, there is no point reporting order backlog, as other OSV builder with cycle as long as 2-3 years.

The observation seems consistent with numbers. In FY2013, more than 20 boats were built. Base on the inventories number in FY2014 interim reports, more will be built, and the extra should be built in Batam yard with the newly expanded capacity.

Sharing thought on the topic

(vested)

[kelvesy]

The results are A W E S O M E.

[LocalOptimal]

Congrats to all buddies invested. I'd also like to thank you guys for the analysis and insights here that led me to put faith in it.

[dydx]

With a fast-enlarging revenue base growing at 56% YoY, and increasing profitability as measured by PBT growing at an even faster rate at 98.5% YoY and by a PBT Margin reaching a high 20.5% in the first 9 months, quite clearly Penguin is the most prolific ship/boat builder listed on SGX…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=323397

I suppose with current FY's EPS running at $0.05, and backed by a positive outlook, Mr Market should be motivated to do his usual trick in revaluing the Penguin stock towards its justified fair value.

[Ben]

Despite being hit by a FX loss of $1.1M, Q3 Net Profit still surged by 155% y-o-y. And revenue of $52M should be a new record. Impressive indeed! We should also take note that inventory is at a high of $34M. With revenue keep on increasing for the last few quarters, and inventory increase in line with revenue, I can only conclude that Penguin in still in a build-as-much-and-as-fast mode.

[idyllic_yawster]

Will be picking up more of Penguin's shares, I deemed it is still undervalued and more upside to come.

[CityFarmer]

With a fast-enlarging revenue base growing at 56% YoY, and increasing profitability as measured by PBT growing at an even faster rate at 98.5% YoY and by a PBT Margin reaching a high 20.5% in the first 9 months, quite clearly Penguin is the most prolific ship/boat builder listed on SGX…..
http://infopub.sgx.com/FileOpen/Penguin_...eID=323397

I suppose with current FY's EPS running at $0.05, and backed by a positive outlook, Mr Market should be motivated to do his usual trick in revaluing the Penguin stock towards its justified fair value.

With an anticipated 5 cents per share EPS for current FY, should we expect a 1 cent dividend, instead of 0.5 cent per share previously, or more?

(happily vested together with fellow shareholders here)

[CY09]

Results are largely expected as many here have contributed to the business developments.

I believe the main reason why Penguin has been constantly "undervalued" is due to the lack of knowledge in Penguin's business among the larger investing community. This is where VB has done great as reflected in the coverage of Valuetronics, China Sunsine, GP batteries, LKT, The Hr glass and Kingsmen Creative. Discussion over these stocks were intense and detailed and all of these were mostly made known to members

It is true the opposite can happen for Penguin's case where the larger investing community knows more than what we have here and thus the undervaluation is justified; however I believe the opposite scenario is highly unlikely.

[weijian]

Results are largely expected as many here have contributed to the business developments.

I believe the main reason why Penguin has been constantly "undervalued" is due to the lack of knowledge in Penguin's business among the larger investing community. This is where VB has done great as reflected in the coverage of Valuetronics, China Sunsine, GP batteries, LKT, The Hr glass and Kingsmen Creative. Discussion over these stocks were intense and detailed and all of these were mostly made known to members

It is true the opposite can happen for Penguin's case where the larger investing community knows more than what we have here and thus the undervaluation is justified; however I believe the opposite scenario is highly unlikely.

Your post is much more restrainted than rest of the more 'huat' posts of other vested parties. It seems like you have deliberately tuned it down (at least in writing) despite having Penguin being a big portion of the portfolio. Good job!