OKP

OKP: Announced slightly weaker 2Q12 results, which was however still in-line with mgt expectations. Rev at $23.6m, -16.7% yoy and -5.2% qoq and net profit at $3.1m, -55.2% yoy and flat qoq. Gross margins fell to 24.3% vs 39.4% yoy. Gross margins slump was mainly attributed to a one-off design-and-build construction project with high gross profit margin the previous yr. Group’s construction segment continues to be its key rev driver, contributing 84.7% of rev, while its maintenance segment also saw a YOY decline in rev from $9.0m to $7.4m. The decrease in rev contribution from both segments was a result of a lower percentage of rev recognized from a few newly awarded contracts during 1H12. Going forward, grp remains positive on prospects, citing a $341.6m strong orderbook, underpinning earnings visibility till 2015. Grp’s fundamentals remain strong with a net cash position of $39.4m vs mkt cap of $165.1m (24% cash) and at current price, trades at 13.4x FY12E P/E.