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
Dear Toni Kang, you wrote:
When will the renovations at 6-8 Bennett Street, East Perth, Western Australia be completed?
The renovations at 6-8 Bennett Street are ongoing and slated for completion in phases through 2027. We expect these improvements to bolster tenant occupancy rates. Our focus remains on managing a stable rental income stream and ensuring long term value preservation of the property.
Dear Adam Q, you wrote:
Congratulations on the stellar performance in the previous financial year. The management has yet again done brilliantly in managing a good balance sheet. Wishing continued success in years to come.
1. Gross profit margins have consistently crossed 30% over the past 3 financial years. Can you share with us how the company has improved since then and what measures did the company adopt to protect profit margins in the next few financial years?
Our consistent good gross profit margins are a direct result of disciplined execution, and a robust project delivery framework. Moving forward, our priority will remain delivering projects well and ensuring jobs are completed on time and within budget, thereby supporting margin preservation. We remain relatively selective in our tendering process, focusing only on projects we believe we can leverage on our core strengths, executive efficiently and manage risk effectively. This approach helps preserve margins and operational stability.
2. Order book values have been healthy recently. Could you share with us the past 5 years of order book values at the end of the financial year - for both construction and maintenance contracts?
Our order book over the last 5 years were as follows:
FY2025 (as at 31 December 2025): S$588.0 million
FY2024 (as at 31 December 2024): S$600.7 million
FY2023 (as at 31 December 2023): S$518.6 million
FY2022 (as at 31 December 2022): S$358.2 million
FY2021 (as at 31 December 2021): S$329.2 million
3. Can you share how the company defrays the concentration risk of big contracts such as the $188m Cycling Park Network contract in FY2023 and the recent $258m Cycling Path Network contract secured in FY2025? Can you share with us how sustainable are such large value contract bids and if the company has excess capacity to take on more of such projects?
As at 31 December 2025, our order book remains strong at S$588.0 million, with revenue visibility extending to 2031. We have a diversified pipeline of projects which ensures that revenue recognition is spread out across years and not within a short period, thus reducing concentration risks.
The sustainability of securing large value contracts will depend on the availability of the projects in the market, the Group's capability and capacity to participate in such tenders and the competitiveness of our tender bids. The Group will continue to leverage its strong track record, technical expertise and financial expertise and financial position to pursue suitable large-scale projects where opportunities arise.
We adopt a disciplined project tendering strategy, focusing on our core strengths in civil engineering and infrastructure projects. We only tender for projects we believe we can leverage on our core strengths, executive efficiently and manage risk effectively. As 70% to 80% of our workforce are directly employed by our Group, we are able to swiftly assess our manpower capacity when tendering for new projects and can be nimble in deploying manpower based on ongoing job requirements.
Dear Lim Ping Ping, you wrote:
I've observed you are buying investment properties with your cash hoard to expand your rental income. Have you considered other investments like building a dormitory for your workers or acquiring the capability to manufacture your own construction material like cement or steel bars?
Currently, about 60% of our workers live in dormitories owned by the Group.
We are in the process of sourcing for factories which we can potentially convert to dormitories to house more of our workers. Our core focus remains our construction and maintenance businesses, areas which provide stable demand and align well with our technical strengths, capabilities and track record. We are not currently considering diversifying into prefab manufacturing or building materials production.
Dear Benjamin Chan, you wrote:
Have you been approached by private funds or investors to place out your shares?
Our balance sheet is strong and we do not need to tap the capital markets at this point in time. We will take into account market conditions and strategic priorities if we make any fund-raising decisions 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.