Wednesday, February 23, 2011


OKP: Announced a fine set of financial results for FY10, with 4Qrev at $29.6m, -11%YoY, and Net Profit at $4.6m, +28%YoY. Result brings FY10 results to a new high of $139m, +8%YoY and Net Profit at $17m, +7%YoY, slightly ahead of average consensus of $16m…..

Co. is proposing a final dividend of 2c/share and special dividend of 2c/share, bringing total dividends for FY10 to 5c/share (Dividend yield of 8.6%), representing a dividend payout ratio of 77%....

Increase in overall Group rev was derived largely from an 18% growth in the Construction segment, which contributed $116.0m to the top line, and accounted for 83% of Grp’s rev. This growth was partly offset by a 25% fall in revenue from the Maintenance segment, which contributed the remaining 17% of total revenue. Growth in revenue from Construction segment due mainly to higher % of revenue recognised from a few major construction projects which were in full swing in FY10…..

Gross profit margin for FY10 rose to 21%, from 18% previously, primarily due to a few construction projects that commanded better gross profit margins, coupled with better project management and tighter cost controls…..

We note that grp’s prospect remains bright, with a total gross order book at a healthy $309.9m, underpinning earnings up to 2014, while grp has a whooping net cash position of 35.7c/share. At current price, grp trades at an ex cash of 4x FY10 PE, vs peers average of 14xPE.

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