Sunshine on Penguin

 

Penguin founded in 1972 is a marine and offshore company. Its main businesses are:

i.  Shipbuilding and repair

ii. Vessels ferry & chartering

The company own two shipyards in Singapore and Batam specialising in building FLEX high speed commercial craft like aluminium crewboat, security and passenger boats. 

 

Sunrise

Business bottomed in 2016 and recovery started in 2017 with significant contract win from Ministry of Home Affairs to build three Fire-fighting Search & Rescue vessels to be operated by Singapore Civil Defence Force. These vessels are expected to be delivered in 2019.

Shipbuilding revenue grew 41% in 2018 vs 2017. In 2017, the company shifted its shipbuilding strategy from build-to-stock to build-to-order. 

 

Morning

Ferry & Charter improved 18% year-on-year. Management guided that chartering activities are picking up and margins are gradually improving. 

 

Dividends

A dividend of $0.0125 (about 3% @ $0.41) will be paid out on 28-May. X-Dividend date is 15-May. 

 

Financial

Balance sheet health is strong with cash of $43M against total liabilities of $55M.

Current ratio is 2.1.

P/E is 6.6 and P/B is 0.6 @ $0.41. 

Stock price have risen 40% since mid-Feb. 10-Y high was reached in 2014 @ $0.83 and 20-Y high was reached in 1999 @ $1.63. 

 

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