Penguin International

[new-comer1]

Shell awards Penguin International electric ferries contract​

https://www.theedgesingapore.com/news/co...s-contract

[pianist]

Shell awards Penguin International electric ferries contract

https://www.theedgesingapore.com/news/co...s-contract

With semiconductor chips in short supply for ev market how is it possible still for penguin to continue to build electric ships

[dydx]

That depends on how much additional electronics are involved in a full battery-powered electric ferry and the supporting charging system/station. I suppose the cost of the lithium-ion battery system is a big component, then comes the cost of the electric propulsion system and the charging system (mostly onshore). The cost of the actual aluminium ferry body itself is probably indifferent, whether electric or normal marine bunker powered. Ferries are different from passenger cars.

[mslee888]

Shell awards Penguin International electric ferries contract

https://www.theedgesingapore.com/news/co...s-contract

With semiconductor chips in short supply for ev market how is it possible still for penguin to continue to build electric ships

Why not? Penguin is only building 3 electric ferries not tens of thousands...

[¯|_(ツ)_/¯]

PIL@66
actual report was released in SGX at 8pm yesterday.  I think PIL is a good company. With a bit of luck, one might get a good de-list offer soon.  However, the journey won't be smooth.  First of all, Jeffery really wanted to de-list the company, he really wanted to. Secondly, he needs all the $$$ to invest into new business segment.  This is a growth area and a lot of $$$ is needed.  He clearly demonstrated that $$$ is needed to grow the business by stopping the dividend this year.  Luck is definitely needed to take another bite at Penguin. 


https://drive.google.com/open?id=1PbgDMm...5c_TaNQ3bD




Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

PIL@61

Today registered 89,500 shares traded between 60.5 and 61.
Sell Q was 60,500@61.

Since there are quite a lot of PIL fan in vb.com, so just take note.

For myself, I'm not vested and no immediate needs to buy yet.

Stay home and stay healthy, everyone.

[dydx]

This should be good news to Penguin's shareholders.
https://www.oedigital.com/news/496808-me...om-penguin

[Yoyo]

Penguin International diversifies into offshore wind and green vessels, enters new markets
https://www.businesstimes.com.sg/compani...enters-new

SHIPBUILDER Penguin International : BTM -1.39% wants to tap the decarbonisation trend with electric vessels as well as vehicles for the booming offshore wind industry – even if it means stomaching lower margins for now.

“Sometimes the price to pay for sustainability is lower profitability,” the company’s managing director James Tham told The Business Times.

Under his leadership and that of executive chairman Jeffrey Hing, Penguin has spent the last decade diversifying its portfolio and geographical reach.

• Going green, earning less
  
• Less cash, more debt, lower margins
  

Penguin seems to be less desirable an investment as compared to its yesteryear.  If you feel otherwise, please share.

[weijian]

Under his leadership and that of executive chairman Jeffrey Hing, Penguin has spent the last decade diversifying its portfolio and geographical reach.

• Going green, earning less
  
• Less cash, more debt, lower margins
  

Penguin seems to be less desirable an investment as compared to its yesteryear.  If you feel otherwise, please share.

hi Yoyo,

The Business: Personally, I think there is nothing wrong with trying to increase market breadth. The margins are lower for electric boats for now. But if/when there are repeat builds in the future, experience and economies of scale kick in and so margins will improve. I think the key is improve market breadth, not stay static. Of course, it is a fine balance. But as long as one doesn't go into huge debt from acquisitions (eg. SATS) or go out of their circle of competence, I think it should seen as a positive.

The Asset: The "less cash/more debt" situation is a result of investing in their shipyards and chartering fleet. Unfortunately, I have observed that the Capital Cycle (focusing on the supply, not demand) is generally a very good guidance. The initial years after increasing supply are always very painful (CAPEX >> depreciation) as a result of under utilization and oversupply. It is only in the latter years when FCF (depreciation >> CAPEX) starts to improve again. In general, I have observed that most Spore based companies have conservative accounting principles with regards to PPE depreciation and such behavior will be beneficial in the latter years as highly depreciated assets on the BS continue to generate good income.

The Structure: Since its FY20's no dividend (that coincided with a failed takeover), the company has resumed dividend payments for last 2 years. The current PE fund has a substantial ~30% stake in the business and as a passive investor, their presence always give comfort to OPMI. It may not come as a big surprise that FY22 dividend was maintained at same level despite lower profitability (especially a worrying 2H22).

[dydx]

Obviously Penguin as a business is more valuable if it is future-ready or future-proof, in electric or other alternative propulsions, e.g. hybrid, hydrogen, etc. Clearly the company already has a head start.