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

OKP Holdings reported higher revenue for 2HFY2022, amounting to a total of $11.6 million, up 30.7% over FY2021. Despite this increase in revenue however the company incurred a net loss of $2.2 million following higher admin and finance costs.

The company, which is in construction and property development, reported a loss of $1 million, versus earnings of $1.5 million for FY2021. Even with the net loss, the company plans to maintain Tengah EC a final dividend of 0.7 cents.

Group managing director Or Toh Wat commented that the firm is pleased with the continued gradual improvement in its topline performance, in line with the reopening of the economy. To further capitalize on this optimism, the company is looking for opportunities to expand and will be taking advantage of its infrastructure and civil engineering expertise. As evidence of this, OKP has recently won two contracts worth $196.2 million from the government for the purpose of road maintenance and related commuter facilities, bringing the company’s total order book to $454.1 million, to be fulfilled by 2026.

The firm has also been steadily growing its recurring income through its property investments, although FY2022 rental revenue dipped by 11.3% due unfavourable currency conversion from rent collected from its assets in Australia. With this in mind, Or commented that the company plans to focus on prudently growing its property investment business in order to boost a steady flow of recurring income.

The company’s Net Tangible Assets, as at the end of December 2022 were valued at 39.75 cents. OKP shares closed February 20 at 17 cents, down 1.2%.