Dear Investors,
Thank you very much for the questions and the opportunities to clarify them. We hope you have a better understanding of our business through this online exchange.
Your questions will be reposted in blue followed by our replies in black.
Rgds,
The Management Team
OKP Holdings Ltd
We do not have a fixed dividend policy. The form, frequency and amount of future dividend of our shares will depend on our earnings, financial position, results of operations, capital needs, plans for expansion and other factors as our Board of Directors may deem appropriate.
Over the last 4 years, OKP has payout dividend of between 1.5 cents and 3cents representing dividend payout ratio of between 40% and 76%.
FY2006 | FY2007 | FY2008 | FY2009 | |
Dividend Per Share | 1.5cts | 2.0cts | 2.0cts | 3.0cts* |
Dividend Payout | 76.4% | 40.9% | 47.5% | 49.5% |
Gross Order book to date (25 Feb 2010) is S$266.6 million based on contracts secured, with projects lasting up to fiscal 2011.
If opportunities arise, we do not rule out this possibility.
Dear Sherry, you wrote:
Hi I have been allocated with 8 lots of warrants. Please advice how can I sell off these warrants? Must I pay anything, ie the exercise price of 20 cts per share when I sell off my warrants? Please advice. Thanks.
OKP warrants are listed on the Singapore Stock Exchange, under Code J6YW. You can sell them at the open market similar to the way you sell your shares. You do not have to pay anything extra when you sell your warrants other than your normal brokerage fees.
Dear Jayster, you wrote:
It will mean an immediate increase in our cost of works. However, the immediate incremental cost will not have material impact on our current projects. We are confident that we will be able to manage our cost, by becoming more efficient and exercising greater financial prudence.
As construction work is labour intensive, we do not foresee any significant productivity gain in the near term. Our assets i.e. plant and machineries deployed are relatively new and we hope to gain better efficiency compared to companies using older machineries. As for government schemes, we can take advantage of some eg. sending our staff for training in safety and technical knowledge. Meanwhile, we will seek to improve margins through other means such as cost savings and managing material costs.
Dear Fraser Teo, you wrote:
How did OKP get hooked up with CIF Singapore Pte. Ltd?
OKP is introduced to CIF Singapore Pte Ltd by Mr Jimmy Leong Ying Wah. Mr Leong is the son-in-law of our Chairman.
The JV will look at work outside of Singapore such as the Republic of Angola, the Republic of Guinea and the Republic of Zimbabwe.
We are currently exploring the nature of projects that we can undertake eg. project management, design, construction and execution of urban developments (including road infrastructure developments) in those markets.
We will make the necessary announcements on SGXNET when we secure our first contract under the JV.
Dear Kelvin Ho, you wrote:
Will there be further contracts from the LTA to maintain the Formula 1 Circuit after OKP's existing contract runs out after May 2010?
LTA contracts are awarded after going through a tender process. When the contracts run out after May 2010, we will certainly continue to participate in the new tender, just like any public sector road works contracts. We are confident that our track record and experience will put us in good stead in that instance.
Dear Mike Tan, you wrote:
I've noticed you haven't had airport runway projects for a long time, why is that so?
The first airport-related project worth $39.5 million was secured in 2002. In 2006, we undertook our first overseas runway project at the Rota International Airport. We are currently participating in some airport infrastructure-related tenders. We will definitely make announcement via SGXNET once we secured it.
Our focus is currently not on China in the immediate term. However, this does not rule out our involvement in China in the future.
Dear Investors,
Thank you for all your questions and the interest in OKP Holdings Ltd. We have come to the end of this Q&A session.
We have enjoyed and learnt much from your questions and we hope that you have a better insight of our Company and know more about our operations.
Rgds,
The Management Team
OKP Holdings Ltd.