OKP

OKP: 1Q rev at $25.0m -24.0% yoy +7.5% qoq with net profit at $3.1m -41.7% yoy -67.9% qoq. Gross margins were approx 21.0% a more normalized figure compared to 39.3% in prev quarter. Construction formed approx 83.0% of revenue with $20.7m and maintenance formed approx $4.2m with 17.0% share of rev. Reduction in rev was attributed to reduced % recognized for few newly-awarded construction projects. Co currently trades at 6.5x trailing P/E. DBS downgrades OKP from Buy to Hold and cuts TP from $0.75 to $0.65 on timing of orderbook drawdown and margin compression. Current net outstanding orderbook estimates is approx $250m and co expects more tenders from LTA, PUB and possible contract wins from partner China Sonangol Land. OCBC downgrades to Hold with TP$0.53 down from $0.75