Portfolio: OKH Global in focus, while our holdings see plethora of action  -- EDGE SINGAPORE

 

SINGAPORE (May 13): The past week has been packed with activity for several stocks in our three portfolios, with a raft of results announcements and corporate actions. Reassuringly, a number of our holdings have reported steady numbers, validating our decision to include them in our portfolios.

 

This week, industrial property developer OKH Global could be in the spotlight, following a story in the latest issue of The Edge Singapore on privately held Pan Asia Logistics, in which the former owns a 15% stake. Shares in OKH have faced a steep sell-off over the past couple of months. They have tumbled over 86% this year, closing at 9.1 cents on May 13. The crash had been caused by forced selling of shares pledged by the company&rsquo s chairman and CEO, Bon Ween Foong.

 

Apart from its interest in Pan Asia Logistics, OKH also owns 40% of one of the group&rsquo s units called Pan Asia Logistics International (PAL International), which develops and owns warehouses around the region. At present, PAL International has three warehouses with a gross floor area of 1.1 million sq ft of space that generated $15 million of revenue last year. These are located in Singapore, Malaysia and South Korea. It is now building a 540,000 sq ft warehouse close to Johor&rsquo s Senai airport that will be leased to German luxury car maker BMW.

 

OKH isn&rsquo t in great financial shape though. For 2QFY2016 ended December, it posted a net loss of $2.1 million on the back of a 98.6% y-o-y plunge in revenue to $3.3 million, dragged down by an absence of income from property development and a reduction in third-party construction contracts. And, with the collapse of its shares, it was forced to raise money on onerous terms.

 

Still, shares in OKH are trading at deeply discounted levels, and its stakes in Pan Asia and PAL International could help it draw renewed interest from investors as these companies expand their operations and portfolio of assets around the world. We think OKH could be an interesting addition to our high-growth portfolio, but we will watch developments for a little bit longer before making a decision.

 

 

&ldquo BMW Group Parts Distribution Centre Malaysia &ndash Ground Breaking Ceremony&rdquo

Pan Asia Logistics and BMW Group Malaysia held the ground breaking ceremony for the new BMW Group Parts Distribution Centre Malaysia at the Airport Free Industrial Zone at the Senai International Airport in Johor Bahru, Malaysia on the 8^th September 2015. Located on a plot of land of 25 acres in the Free Industrial Zone of the Senai International Airport, the new BMW Group Parts Distribution Centre Malaysia will be a new state of the art logistics warehouse and parts distribution centre for the premium automaker, supporting over 22 countries in the region.

The new facility will also replace the current Parts Distribution Centre facility in Malaysia for the BMW Group which is located within the Free Trade Zone of the Port of Tanjung Pelepas, Johor Bahru. The lease agreement, for the new BMW Group Parts Distribution Centre Malaysia which provides up to 761,000 sq ft of logistics property space is planned in two phases.

The Edge Markets SG-13 May 2016

Apart from its interest in Pan Asia Logistics, OKH also owns 40% of one of the group' s units called Pan Asia Logistics International (PAL  ...