OKP

OKP: SIAS maintains Increase Exposure with $0.755 TP. Note that net profit came in at $3.05m on revenue of $25.0m. Lesser revenue was recognized yoy due to the rapid completion of the S$120m CTE widening project in spite of additional variation works. OKP has several large scale projects on its order book, e.g. two expressway projects with combined value of $137m and that their progress remains healthy. The more recent $75.3m project to expand the CTE/TPE/SLE interchange awarded in Feb-12 is currently in the design phase and construction will ramp up in 3Q. While house had expected a more moderate 1Q, further adjusted revenue and net profit forecast to $117.5m and $17.3m for FY12F in view of the low base in 1Q.