OKP Holdings

[¯|_(ツ)_/¯]

agrees.
property investment became core.

The Property has a freehold tenure and comprises a three-storey with attic shophouse. It occupies a lot area of approximately 1,568 square feet and has a total floor area of approximately 4,240 square feet. The Purchaser intends to purchase the Property for investment and the Proposed Purchase is in the ordinary course of business of the Group.
https://links.sgx.com/FileOpen/Purchase%...eID=636275

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

OKP
Tx completed - 3 storey shophouse@$11m with existing tenancy agreements.

No material impact to NTA or EPS for FY ending 31 Dec 2020.

Stay home and stay healthy, everyone.

[¯|_(ツ)_/¯]

OKP
The Board wishes to update that the trial in respect of the subsidiary, Or Kim Peow Contractors (Pte) Ltd and the employees, Mr Allen Yee and Mr Wong Kiew Hai, arising out of the accident has concluded, and the aforementioned entity and individuals have been convicted of their respective charges on 22 January 2021. A hearing for the sentencing in relation to the aforementioned conviction is fixed for 8 and 9 April 2021.
https://links.sgx.com/FileOpen/Annc%20-%...eID=645976

Stay home and stay healthy, everyone.

[¯|_(ツ)_/¯]

okp@19
1HFY2021 Result
https://links.sgx.com/FileOpen/OKP_1H202...eID=677313

https://drive.google.com/open?id=10g3a-4...U_iAjiEVkb

Stay home and stay safe, everyone.

[weijian]

From remuneration as a result of FV gains (but not losses) to including minority interests in its calculations, now we have a case of earning from a tragedy? Well, the EDs would probably say that they had already suffered a remuneration loss due to the company underperforming as a result of the incident. So the current remuneration increase as a result of the lawsuit compensation is "compensation" after all.

Nothing wrong on paper though and so it is correct (but probably not right).

OKP HOLDINGS: WINDFALL FROM A TRAGEDY

In May 2021, Or Kim Peow  Contractors (OKPC) , a wholly-owned subsidiary of OKP, was fined $1 million for failing to take reasonable measures to ensure the safety of its workers. This was after one worker was killed and 10 others were injured when a portion of the viaduct from Tampines Expressway (TPE) to the PIE and Upper Changi Road East being constructed by  OKPC collapsed. The project director was sentenced to 13 months’ jail and the project engineer got 11 months. The group managing director, Mr Or Toh Wat, was given a discharge not amounting to an acquittal in court for his three charges in relation to the collapse.

OKPC  subsequently sued the consultancy firm CGP Consultants and was awarded $43.8 million in March 2023.

For the half year ended 30 June 2023 (1H2023), OKP’s gross profit decreased by 58.6% or $2.9 million, from $5.0 million for 1H2022 to $2.1 million for 1H2023. Gross profit margin fell from 9.3% to 2.9%.

The remuneration of directors of OKP trebled from $1.2 million to $3.6 million even though OKP’s operating profitability had worsened for H12023 compared to H12022. The large increase in remuneration of the directors resulted from the subsidiary winning the lawsuit against its contractors for the accident –  and for which the courts had found its subsidiary guilty of failing to take reasonable measures to ensure the safety of its workers, resulting in a fine for the subsidiary, and two of its employees being sent to jail.

https://governanceforstakeholders.com/20...a-tragedy/

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OKP@22

Thanks WJ for bringing up OKP.  The question remain the same "What are you going to do?"

I had taken some action and vested a bit in OKP recently. 
There are a lot of good stocks worth buying, will OKP be one for you?

Enjoy:
"Getting on with its feet" by The Moss Piglets (link)

• OKP Holdings has faced difficulties in the past due to the fatal accident at their project in 2017.
  
• With respect to the accident, OKP succeeded in the Arbitration against the design consultant and awarded S$43,792,421.96.
  
• Also with respect to the accident, they were not actively pursuing government tenders from 2017-2020. Unlike majority of Singapore’s construction industry, they avoided executing projects that were badly affected by cost increases arising from the pandemic.
  
• OKP has regained momentum in new contract wins worth $384.5mil since Nov 2022.
  

Gratitude!

[weijian]

Hi ¯|_(ツ)_/¯,

First, I have to admit that I have not done an in depth review on OKP as it is low on my priority list. So my opinion wouldn't be too useful. It is low on my priority list because the 2017 event has seemingly destroyed its original competitive advantage, and this is a jockey that I wouldn't prefer to have to ride along with.

Year/Revenue/GPM
2014 Revenue:109,476 GPM: 8.0%
2015 Revenue:103,290 GPM: 13.3%
2016 Revenue:111,099 GPM: 19.7%
2017 Revenue:117,530 GPM: 18.6% (year of TPE accident)
2018 Revenue:90,449 GPM: 19.2% (peak GPM, completing most of its "higher margin" infrastructure projects?)
2019 Revenue:81,396 GPM: 13.3%
2020 Revenue:69,627 GPM: 10.6%
2021 Revenue:90,035 GPM: 7.5%
2022 Revenue:117,646 GPM: 9.2%

I have not done in-depth review on the reason/s for the margin compression. But it does seem to fit nicely into the fact that they have lost their original competitive advantage that caused the bottom-up share price to double from 2015 to just before the accident in 2017? Compared to doing high entry barrier infrastructure work like highway widening/extensions, their current construction activity are mainly centered around canals/covered walkways etc, which I assume are of smaller scale and probably invite more competitive bids for it, hence compressing margins.

With BCA's optimistic forecast released last week, it is probably a "3-4 feet pole" that one has to overcome with OKP. Might be easier if they are lower ones around.

[¯|_(ツ)_/¯]

Thanks WJ.
INDEED. There are lower bar one around  and I'm vested in that stock too. 

When it comes to buying stocks, I am fully aware that I'm buying risks and because of that I tried very hard not to carried away and loss my mind in buying a big amount. 
Just side track a little bit, sometime, one of my stock will run away and become more than 30% or even near to 50% of my portfolio. Those statistics was achieved not because I buy more but because they just ballooning up by themselves. 

Ok, back to OKP.

By now you might already know that my favourite investment technique (if I can call them as technique) is "Follow the guru."

In the case of OKP, the guru happens to be The Moss Piglet (link)

In my previous post, I copied his first paragraph.
Now, let me copy his last paragraph:

Therefore, I see huge upside for OKP in terms of value creation for shareholders. There is still much to be done, But on the back of an improved competitive position, high cash levels and a depression of valuation multiples due to its past events. This makes me quite upbeat on their future performance.

"Therefore, I see huge upside for OKP in terms of value creation for shareholders. There is still much to be done, But on the back of an improved competitive position, high cash levels and a depression of valuation multiples due to its past events. This makes me quite upbeat on their future performance."

Allow me to rre-phase in my own words what make sense to me. These are by no means expert advise but formed part of my investment journey and I'm still learning:
1) OKP - as a construction company has not been doing well.  The reason is likely construction is a tough business and due to strong competition (from local as well as foreign company), it's margin is always compressed.
2) OKP had been challenged in their forte and it had been shifting it's focus area from time to time. They had never stopped trying - exactly what you mentioned in your previous post.
3) Did OKP found a nice niche area to growth? I don't know and although I care about them finding a niche but I'm not overly concern because that's EXACTLY what I'm paying OKP management for - to take care of their business.
4) When I look at their business and the results that they bring on the table (I don't know about you), I am rather surprise and happy of their performance.  No doubt, they are not the top notch but their result did fall squarely into my acceptable pitch area which worth my swing.
5) The main reason I pulled my trigger recently was the transaction volume kicked in and worth my time/energy to pick a reasonably good quantity of stocks in a short time.

Today, marked the beginning of FY2024, may I suggest we take another look at OKP performing says 1 year from now?

Gratitude!


Enjoy:

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OKP@24cts

FY2023 Result out:
Rev, GP, NP goes up 36%, 128%, 28832% 
Div 1.5cts (0.7 + 0.8 special)

Gratitude!
Especially bro Moss Piglet (link to OKP - getting back on its feet)
Couldn't wait to see how OKP performing in next 12 months. 

[weijian]

The main bright point of OKP's 2H23 was the big increase in GP and naturally follows the question of whether "a higher GP  than post accident" is sustainable or not. A shareholder has asked about it and Mgt is giving good vibes from the answer.

MINUTES OF TWENTY-SECOND ANNUAL GENERAL MEETING

Question: It is noted that the gross profit margin of the Group had increased and the Group has a large order book. Will the margin for FY2024 be higher, lower or the same?

Answer: The gross profit margin should be sustainable. The projects in FY2022 were mainly secured before the COVID-19 pandemic. For FY2023, the projects were mostly secured after the COVID-19 pandemic and had better margins. There was also the arbitration award in 2023. The Management is mindful of securing contracts with good profit margins during the tender. As disclosed on the GeBIZ website, the Group was recently awarded a new cycling path network project by LTA and an announcement would be made once it has been cleared by LTA. The Group is aware of future contracts and will allocate its resources accordingly when deciding on which contracts to tender for.

https://links.sgx.com/FileOpen/2024%20AG...eID=802970