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

[Lakenso]

Seems like what dydx mention is true. There is a sudden surge in business for the company and eps more than doubled. Div also went up around 50%. Congrats to the buddies who held on to their shares. I wonder what is next on the owner’s plate. Would they revise a better/more reasonable buy out offer?

https://finance.yahoo.com/news/penguin-i...48525.html

[lonewolf]

AWARD OF TURNKEY SHIPBUILDING CONTRACT FOR TWO LANDING CRAFT BY SINGAPORE'S MINISTRY OF DEFENCE

The Board of Directors of Penguin International Limited ("Penguin" or the "Company", together with its subsidiaries, the "Group") is pleased to announce that the Company has been awarded a contract by Singapore's Ministry of Defence ("MINDEF") for the design, engineering and construction of two landing craft for the Republic of Singapore Navy ("RSN").

Certain details relating to the contract, including its value, design and technical specifications, are subject to confidentiality obligations and will not be disclosed.

This award marks Penguin's first naval shipbuilding programme as a prime contractor for the RSN and represents a significant strategic milestone in the Group's 50-year evolution as a designer, builder, owner and operator of high-speed aluminium vessels.

As a prime contractor, Penguin will be responsible for delivering an integrated platform that meets the stringent operational requirements of the RSN.

The Company recently completed and delivered the first of six large carbon-fibre composite superstructures as a subcontractor to Saab for the RSN's Multi-Role Combat Vessels.

Since its incorporation in 1976, Penguin has developed a broad range of in-house capabilities spanning vessel design and operations, engineering, procurement, construction, project management, systems integration, testing, commissioning and life-cycle support.

The Group's shipyards in Singapore and Batam have delivered close to 400 aluminium vessels to commercial and government owners and operators across more than 20 countries, serving the offshore energy, government and tourism sectors.

The RSN landing craft contract will be executed entirely in Singapore and will draw upon Penguin's in-house engineering capabilities.

The programme will be based in Penguin's 30,000-square metre shipyard at 21 Tuas Road, which is equipped with large fabrication workshops with overhead cranes that enable the landing craft to be built entirely under cover, a 500-ton marine travelift and a dedicated waterfront with 50-metre piers.

Commenting on the award, Penguin's Executive Chairman Jeffrey Hing said, "This award represents far more than the construction of landing craft. It marks Penguin's entry into naval shipbuilding as a prime contractor and reflects the confidence placed in our people, our engineering capabilities and our global track record."

"Over five decades, Penguin has evolved into a designer, builder, owner and operator of specialised aluminium vessels. This programme enables us to apply that accumulated expertise in support of Singapore's defence and maritime security objectives, while establishing a strong foundation for future opportunities in the defence sector," Mr Hing added.

In addition to marking its entry into naval defence, this award also serves to affirm Penguin's growing capabilities in complex vessel engineering, programme management, systems integration, shipbuilding and life-cycle support.

It further establishes Penguin as a trusted supplier to Singapore's defence ecosystem and provides a valuable reference for future opportunities in the global naval defence and government maritime sectors.

"This programme is transformational for Penguin and goes well beyond the Group itself," said Penguin's Managing Director James Tham. "It represents a strong affirmation that an independent Singaporean homegrown shipbuilder can successfully undertake the delivery of complex naval platforms for our country's defence needs. It is also about building national capability and strengthening sovereign maritime resilience."

The contract is expected to contribute positively to the revenue and earnings of the Group from FY2027 and over the duration of the project. It is not expected to have any material impact on the net tangible assets per share of the Group for the current financial year.

None of the Directors, controlling shareholders or substantial shareholders of the Company has any interest, direct or indirect, in the contract other than through their respective shareholdings in the Company.

The Company will make further announcements as and when there are material developments relating to the contract.

SOURCE: SGX Annoucement

[mslee888]

Very low free float after failed last buy out @88.92%. A well run company but low liquidity. Just have to keep collecting dividend till next buy out offer.

Vested.