OKP Holdings: Announced $22 million contract from the PUB to raise a part of Orchard Road. Work will start next month and the project is expected to take about seven months to complete. Contract is the 2nd grp has won from PUB this year, and takes the value of public sector projects secured by the co. since Jan to $82m….
We note on Mon, grp reported its best ever 9mFY10 performance, with record profit after tax at $12.3m and rev of $110.3m. Increase in Grp’s rev was boosted largely by a significant 29% growth in the Construction segment, while Gross Margins remained strong, at 18%, up 9% YoY…..
Contract win will increase orderbook to $349.6m, expected to stretch till 2013, with a net-cash position of $85m. At current price, grp trades at an annualized Forward P/E of 8.9x FY10 vs peers average of 8.4x, however grp has an estimated $0.22 net cash/share surplus which warrants a premium for its share price. DBSV has Buy rating on stock with $0.70 TP based on 7x FY11 PE + sum of Net cash surplus.
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