The following article by Joseph Yeo recently appeared in the NextInsight forum.
The company started off as a sole proprietorship in 1972, was incorporated in 1976 and converted into a public limited company in 1997.
The company was fairly low profile and the operating results in past years were nothing much to short about. However in the last 2 years -- 2013 and 2014 -- there seems to be a dramatic change in the company.
It seems to have found a "new life" with its revenue and profit improving quite dramatically. See figures below:
| Profits after tax in mil 2011 - S$9.7 2012 - S$4.9 2013 - S$16.1 2014 - S$30.1 |
Revenue in mil
2011 - S$80.5
2012 - S$85.7
2013 - S$110.3
2014 - S$164.8
Penguin -- a marine and offshore services group, specialising in the design, construction, repair and operation of high-speed aluminium commercial vessels.
It appears that the Penguin of today is different from the Penguin of yesteryears. The company seems to have found a new niche which has taken it to its present level. Please read its annual report and other announcements for more details.
The company has no debt but a cash horde of S$37.4 million.
It has increased its dividend to 1 ct (final and special) from previous years' 0.5 ct. This gives a dividend yield of close to 5% based on the last done price of 20.5cts.
The 52-week high for the share is 28.5 cts and low is 16.5 cts.
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Pls note that there maybe "blips" in the company's bottomline in the next few quarters. Management did mention and I quote:
"Sobering sentiments in the offshore oil and gas industry are expected to temper demand for the Group's crewboats and Fast Supply Intervention Vessels in sales and charters. However, demand for security vessels (Flex Fighter) and passenger ferries (Flex Ferry), as well as ship repair services, is expected to be less affected. Notwithstanding market sentiments, the Group will continue its ongoing programme of developing niche vessel designs targeted at profitable market segments."
I am vested for the long term.
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