Penguins are highly efficient marine animals that swim underwater using a pair of flapping wings. To achieve higher swimming speed in a penguin-mimicking robot, we developed a new robot with a smaller fuselage diameter (170 mm, 50.2% cross-sectional area compared to prior work at 240 mm) to reduce hydrodynamic drag while maintaining propulsive output. To realize this compact design, we developed a novel submersible geared servomotor using a cycloidal reduction mechanism, enabling four actuators to be arranged linearly within the narrow fuselage. Swimming experiments showed a peak speed of 2.0 m/s (2.36 BL/s) during acceleration, approaching the prior robot's maximum speed. Although attitude instability prevented full speed convergence, results strongly suggest that fuselage diameter reduction is effective for speed enhancement.