OKP

OKP: OCBC maintains Hold with $0.48 TP. To recap, 4Q12/FY12 results were generally in line with expectations. While FY12 net income of S$104.5m (-5% YoY) was 5% lower than house estimate, net profit of $12.4m (-53% YoY) was 6% higher than what we expected. The lacklustre results were due to a weak economy, price competition and climbing labour costs. OKP declared a first and final dividend of 1.5c/share, lower than the 2c that the street had expected. FY12 dividend translates into a yield of 2.9%. House believe that mgt is conserving cash to increase its flexibility to tender for government projects. Following a change in analyst, house have adjusted forecasts for OKP’s FY13 and FY14 performance.