OKP generates higher revenue but reports a loss as higher costs bite

OKP Holdings reported a net loss of $2.2 million for the six months ended December 2022, compared with earnings of $0.5 million during the same period of the Tengah Plantation EC previous financial year (1HFY2021). Revenue for 2HFY2022, however, increased by 42.4%, totaling $64.1 million for the period. This brings the full year revenue figure to $11.6 million, up 30.7% from FY2021.

Despite the reported loss, OKP Holdings will maintain a final dividend of 0.7 cents. Group managing director Or Toh Wat commented on the results, “We are pleased with the continued gradual improvement in our topline performance, in line with the reopening of the economy.” He expressed confidence in the company’s future prospects to expand its infrastructure and civil engineering expertise by tapping into construction and property development opportunities.

The company recently won two contracts worth $196.2 million from the government, bringing its total order book to $454.1 million. OKP is committed to growing its recurring income by investing in property. In FY2022, rental revenue decreased by 11.3%, impacted by fluctuations in international exchange rates. The group’s net tangible assets (NTA) was at 39.75 cents as at December 31, 2022.

On February 20, OKP shares closed at 17 cents, down 1.2%. The company is determined to prudently grow its property investment business, which will contribute to a steady flow of income. With ongoing optimism from the public sector and the recent contract wins, OKP Holdings looks set to move forward with confidence.