Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Corporate Information
Financial Information
Governance & Sustainability
Newsroom
Stock Information
Webcasting
Information Request

Email This Print This

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 Boon Cheong, you wrote:

  1. What's the intended yield or net income impact from the recent Perth property acquisition?

    Barring unforeseen circumstances, we expect the yield to be at least 5% based on the current occupancy rate of 68%.

  2. Order book has declined significantly, what are the measures to arrest this?

    After the outcome of the investigations relating to the PIE-TPE worksite incident has been released, we hope to move on and continue to focus on delivering our projects and strengthening our order book.

    Backed by our track record of more than 50 years, coupled with our strong technical capabilities and tightened workplace safety practices, the Group remains committed to securing contracts to add to our order book.

    Currently, the Group is bidding for various civil engineering projects, including major infrastructure projects such as the North South Corridor.

Dear Vishal Gala, you wrote:

  1. How much revenues have been recognised till date out of the total project value of S$94.6 million?

    About 28% of the revenue of the PIE-TPE viaduct project has been recognised as at 31 December 2017.

  2. Considering the no revenue in H2 2017 was recognised for this project (means no progress on construction) but additional costs of at least S$3.2 million were spent – can the management clarify what were the main headings/type of costs spent?

    Approximately S$1.0 million was incurred for medical and compensation fees for the injured workers and incident related costs while the remaining amount was set aside for foreseeable reconstruction works for the viaduct project.

  3. In management's view what could be the maximum estimated total exposure and does the company have any back-to-back exposure protection with any negligent subcontractors?

    The investigations concerning the incident are still ongoing and we are thus unable to fully assess the impact of the worksite incident on our financial performance for FY2018.

    We will make the relevant announcements on SGXNet at the appropriate time.

    The Group has insurance plans in place to mitigate the impact arising from negligent subcontractors.

  4. While difficult to quantify at this stage, could the management comment on the nature of impact the comp could have for future government project bidding (e.g. safety score recovery period; net order book falling YOY by S$62 million) As your shareholder I feel this could be the biggest impact on the company and more comments from the management would help us prepare for what's to come.

    There are lessons to be learnt with any incident.

    Following the outcome of the investigations, we hope to move on and continue to focus on delivering our projects and strengthening our order book.

    Backed by our track record of more than 50 years, coupled with our strong technical capabilities and tightened workplace safety practices, we believe that we will be able to continue to secure contracts to add to our order book.

    Currently, the Group is bidding for various civil engineering projects, including major infrastructure projects such as the North South Corridor.

  5. What are the financial objectives for investment properties? The gross yield (S$236 K on $7.2 million investment) seems to be less than 3.5% and the net yields considering no leverage used could be even lower than Singapore Government bonds annual yield.

    With the recent addition of the office complex in Perth, Australia to our investment portfolio, we expect to enjoy additional net income and further growth of our recurrent income stream over the medium to long term.

    Based on the current occupancy rate of 68%, we see good upside potential in raising occupancy for 6-8 Bennett Street as we expect demand for offices in Perth CBD to continue to improve in the medium term.

    This is supported by the limited new office supply and strong demand for good quality office space, as well as rising activity in the mining sector which is a major employment driver for Perth.

  6. Could the management comment similarly on the financial strategy for investment in free-hold office complex in Perth for AUD 43.5 million?

    The Group's recent acquisition of the office complex in Perth, Australia, is aligned with our long term strategy to diversify our earnings and build a recurrent income base.

    We will continue to focus on our civil engineering business and at the same time identify suitable opportunities to broaden our foothold in the property sector, both locally and abroad, through strategic tie-ups with experienced partners.

  7. What is the total open tender value for OKP currently (tender submitted but not awarded)?

    We are currently tendering for projects of more than $100 million in value, including major infrastructure projects such as the North South Corridor.

Dear Kelvin Foo, you wrote:

Do you see property development and investment becoming your main core business in the future?

The Group's recent corporate developments in the property sector are aligned with our long term strategy to diversify our earnings and build a recurrent income base.

We will continue to focus on our civil engineering business which will remain our core business.

Concurrently, we will continue to identify suitable opportunities to broaden our foothold in the property sector, both locally and abroad, through strategic tie-ups with experienced partners.

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.