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OKP unit wins S$258.3 million LTA contract to construct new cycling paths in east
With this latest award, the group&rsquo s net construction order book has reached a record high of S$735.8 million
[SINGAPORE] A unit of mainboard-listed infrastructure and civil engineering company OKP has won a contract worth S$258.3 million from the Land Transport Authority (LTA) for the construction of new cycling path networks in the eastern region of Singapore.
This is the largest contract in value that OKP has secured to date. It also marks the fourth contract that its subsidiaries have been awarded by LTA for the construction of cycling path networks across Singapore, amounting to a total of S$617.8 million.
Under the latest contract secured, OKP&rsquo s wholly owned subsidiary &ndash Or Kim Peow Contractors &ndash will be involved in the design and construction of the cycling path networks in the east, as well as other ancillary works, the group said in a bourse filing on Friday (May 30).
The cycling paths will be constructed across 11 towns &ndash Sengkang, Hougang, Serangoon, Potong Pasir, Geylang, Kaki Bukit, Marine Parade, Bishan Industrial, Tampines Industrial, Pasir Ris Industrial and Bedok Industrial.
The scope of the contract includes converting existing footpaths to cycling paths and creating new pedestrian footpaths through &ldquo careful space planning&rdquo with stakeholders and landowners, said OKP.
The works also encompass infrastructure improvements such as grating replacements, retaining walls, drainage enhancements and cycling path finishes such as signages, high strength coating and thermoplastic marking.
The contract, which spans 72 months, commenced on May 27 and is expected to be completed by May 26, 2031.
With this latest award, the group&rsquo s net construction order book has reached a record high of S$735.8 million, with contracts extending till 2031.
OKP&rsquo s group managing director Or Toh Wat said: &ldquo This contract win is expected to contribute positively to both our top and bottom lines, reinforcing our growth trajectory.&rdquo
&ldquo Securing this fourth contract from LTA for the construction of cycling path networks strengthens our role in contributing to a greener and more sustainable land transport ecosystem,&rdquo he added.
The group was previously awarded a S$92.9 million contract for the construction of cycling path networks in western Singapore S$78.3 million contract covering the regions of Central, Kallang, Bukit Merah and Bukit Timah and a S$188.3 million contract for works across seven towns in the east region.
https://okp.listedcompany.com/news.html/id/2555734
For Immediate Release
OKP&rsquo S WHOLLY-OWNED SUBSIDIARY SECURES RECORD S$258.3 MILLION
CONTRACT FROM LTA FOR THE CONSTRUCTION OF NEW CYCLING PATHS FOR
EAST REGION - Sizeable contract encompasses design and construction of Cycling Paths
for East Region (AM205)
- 72-month contract commenced in May 2025, and is expected to be
completed by May 2031
- Record contract win boosts the Group&rsquo s current net construction order to
all-time record high of S$735.8 million, with projects extending to 2031
Singapore, 30 May 2025 &ndash MAINBOARD-LISTED infrastructure and civil engineering
company, OKP Holdings Limited (胡 金 标 控 股 有 限 公 司 ) (&ldquo OKP&rdquo or the &ldquo Group&rdquo ), today
announced that the Group has secured a contract worth approximately S$258.3 million
from the Land Transport Authority (&ldquo LTA&rdquo ), for the construction of new cycling path
networks (&ldquo CPN&rdquo ) in the East Region across eleven towns, including Sengkang,
Hougang, Serangoon, Potong Pasir, Geylang, Kaki Bukit, Marine Parade, Bishan
Industrial, Tampines Industrial, Pasir Ris Industrial and Bedok Industrial.
Under this contract, OKP&rsquo s wholly-owned subsidiary, Or Kim Peow Contractors (Private)
Limited, will be involved in the design and construction of CPN as well as other ancillary
works. The scope includes converting existing footpaths to cycling paths and creating
new pedestrian footpaths through careful space planning with stakeholders and
landowners. The works also encompass infrastructure improvements such as grating
replacements, retaining walls, drainage enhancements, and cycling path finishes (such
as signages, high strength coating and thermoplastic marking).
The 72-month contract commenced on 27 May 2025 and is expected to be completed
by 26 May 2031.
As of today, the Group&rsquo s net construction order book has reached a record high of
S$735.8 million, with contracts extending till 2031.
Group Managing Director, Mr Or Toh Wat (胡 土 发 ) said, &ldquo This landmark achievement
is a testament to the confidence and trust placed by LTA in OKP. Not only does it mark
the largest contract win in our corporate history, it also underscores the Group&rsquo s strong
capabilities in replenishing our order book. With this single largest award, our order book
has now reached an all-time record high of S$735.8 million. This contract win is expected
to contribute positively to both our top and bottom lines, reinforcing our growth trajectory.
&ldquo We are committed to the smooth delivery of the project by upholding high standards in
our work processes and deliverables. Securing this fourth contract from LTA for the
construction of cycling path networks strengthens our role in contributing to a greener
and more sustainable land transport ecosystem. It reaffirms our commitment to
prioritising environmental sustainability in support of the Singapore Green Plan 2030.&rdquo
OKP&rsquo s wholly-owned subsidiaries were awarded four LTA contracts for the construction
of CPN, totalling S$617.8 million. This comprises the aforementioned S$258.3 million
contract for the construction of new CPN in the East Region (AM205), a S$92.9 million
contract for the construction of CPN in Western Singapore (AM201), a S$78.3 million
contract covering the regions of Central, Kallang, Bukit Merah and Bukit Timah (AM202),
and a S$188.3 million contract for works across seven towns in the East Region
(AM120).
For Immediate Release
OKP&rsquo S WHOLLY-OWNED SUBSIDIARY SECURES RECORD S$258.3 MILLION
CONTRACT FROM LTA FOR THE CONSTRUCTION OF NEW CYCLING PATHS FOR
EAST REGION - Sizeable contract encompasses design and construction of Cycling Paths
for East Region (AM205)
- 72-month contract commenced in May 2025, and is expected to be
completed by May 2031
- Record contract win boosts the Group&rsquo s current net construction order to
all-time record high of S$735.8 million, with projects extending to 2031
Singapore, 30 May 2025 &ndash MAINBOARD-LISTED infrastructure and civil engineering
company, OKP Holdings Limited (胡 金 标 控 股 有 限 公 司 ) (&ldquo OKP&rdquo or the &ldquo Group&rdquo ), today
announced that the Group has secured a contract worth approximately S$258.3 million
from the Land Transport Authority (&ldquo LTA&rdquo ), for the construction of new cycling path
networks (&ldquo CPN&rdquo ) in the East Region across eleven towns, including Sengkang,
Hougang, Serangoon, Potong Pasir, Geylang, Kaki Bukit, Marine Parade, Bishan
Industrial, Tampines Industrial, Pasir Ris Industrial and Bedok Industrial.
Under this contract, OKP&rsquo s wholly-owned subsidiary, Or Kim Peow Contractors (Private)
Limited, will be involved in the design and construction of CPN as well as other ancillary
works. The scope includes converting existing footpaths to cycling paths and creating
new pedestrian footpaths through careful space planning with stakeholders and
landowners. The works also encompass infrastructure improvements such as grating
replacements, retaining walls, drainage enhancements, and cycling path finishes (such
as signages, high strength coating and thermoplastic marking).
The 72-month contract commenced on 27 May 2025 and is expected to be completed
by 26 May 2031.
As of today, the Group&rsquo s net construction order book has reached a record high of
S$735.8 million, with contracts extending till 2031.
Group Managing Director, Mr Or Toh Wat (胡 土 发 ) said, &ldquo This landmark achievement
is a testament to the confidence and trust placed by LTA in OKP. Not only does it mark
the largest contract win in our corporate history, it also underscores the Group&rsquo s strong
capabilities in replenishing our order book. With this single largest award, our order book
has now reached an all-time record high of S$735.8 million. This contract win is expected
to contribute positively to both our top and bottom lines, reinforcing our growth trajectory.
&ldquo We are committed to the smooth delivery of the project by upholding high standards in
our work processes and deliverables. Securing this fourth contract from LTA for the
construction of cycling path networks strengthens our role in contributing to a greener
and more sustainable land transport ecosystem. It reaffirms our commitment to
prioritising environmental sustainability in support of the Singapore Green Plan 2030.&rdquo
OKP&rsquo s wholly-owned subsidiaries were awarded four LTA contracts for the construction
of CPN, totalling S$617.8 million. This comprises the aforementioned S$258.3 million
contract for the construction of new CPN in the East Region (AM205), a S$92.9 million
contract for the construction of CPN in Western Singapore (AM201), a S$78.3 million
contract covering the regions of Central, Kallang, Bukit Merah and Bukit Timah (AM202),
and a S$188.3 million contract for works across seven towns in the East Region
(AM120).
Care to share the source? Thank you.
superstartup ( Date: 28-May-2025 08:23) Posted:
|
I think OKP doesn' t announce new contracts, only can be seen during the half or full FY results document. Think they might have gotten T5 contract too. Received good dividend few days ago thou. DYODD
all time high
Awarded a single contract $258m (more than one year revenue and multi-years high awarded contract)
Awarded to Or Kim Peow Contractor (100% owned subsidiary)
Not T5 related. (So maybe still have bonus contracts in the pipeline)
Hopefully when the PR comes, they will share other contracts they get awarded over the last few months too.
Awarded to Or Kim Peow Contractor (100% owned subsidiary)
Not T5 related. (So maybe still have bonus contracts in the pipeline)
Hopefully when the PR comes, they will share other contracts they get awarded over the last few months too.
People keep shouting contracts, contracts.
Let OKP shows people what is Contract on Hand. Real stuff. Not air.
And what is a huge contract (relative to the company yearly revenue and past contracts awarded).
Let OKP shows people what is Contract on Hand. Real stuff. Not air.
And what is a huge contract (relative to the company yearly revenue and past contracts awarded).
superstartup ( Date: 27-May-2025 10:33) Posted:
|
Bought some over here
Last:0.66 --
not bad doubled my investment in less than a year
know how to spot undervalued companies and let the market take care of the rest
not bad doubled my investment in less than a year
know how to spot undervalued companies and let the market take care of the rest
ozone2002 ( Date: 19-Feb-2025 23:22) Posted:
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Gridlock to goldmine: OKP Holdings cashes in on road ruckuses
Driving in Singapore can be annoying with roadworks plentiful everywhere. Carried out not only during the day but also at night, they often cause traffic to crawl as lanes are closed and detours multiply.
But while motorists grit their teeth, OKP Holdings has found opportunity in the gridlock. The homegrown transport infrastructure and civil engineering firm is benefiting from robust demand for road construction and maintenance, with a steady stream of government contracts turning traffic snarls into a lucrative source of revenue.
OKP generated record revenue of nearly $182 million last year and had an order book of over $600 million as at the end of 2024, enough to keep it busy until 2027. It boasts a workforce of 960, about three-quarters of whom are construction workers.
The numbers underscore how Singapore' s unrelenting pace of infrastructure upgrades - while often frustrating for road users - has become a propellant of growth for builders like OKP, whose A1-grade certification from the Building and Construction Authority (BCA) allows it to bid for public-sector projects of unlimited value.
Some $47 billion to $53 billion worth of construction contracts in Singapore is expected to be awarded this year, according to BCA. That' s more than the $44.2 billion dished out in 2024.
Contracts for several large-scale developments, such as Changi Airport Terminal 5 and the expansion of the Marina Bay Sands integrated resort, are expected to account for a big chunk of this year' s haul.
While OKP' s existing projects are smaller in scale and value, they represent a steady stream of jobs being pushed out by the government as part of Singapore' s long-term urban development.
" These are all already in the works or already ongoing. These projects will continue for the next few years," Or Toh Wat, OKP' s group managing director, tells The Edge Singapore.
' These projects will continue for the next few years,' says Or Toh Wat, OKP' s group managing director
Even with the local economy at risk of slowing down, Singapore' s construction sector should still hold up, says Or, the second of OKP founder Or Kim Peow' s three sons, all of whom are actively involved in the company. The patriarch started the business in 1966, listed it on the Singapore Exchange (SGX) in 2002, and is now OKP' s chairman.
Amid rising global trade tensions following recent moves by the US to impose tariffs on imports from countries worldwide, Singapore recently downgraded its GDP forecast for this year to between 0% and 2% from 1% to 3%.
" If the government foresees that the economy will not be good, they will likely try to support it through pump-priming," says Toh Wat. " As far as the construction sector goes, there will still be a need for housing - public housing, especially - and the expansion of Changi Airport and the rail network will still continue."
Estate upgrading and Singapore' s ongoing efforts to get its people to be more physically active are also working in OKP' s favour. Some of its projects entail installing covered walkways in HDB estates and building cycling paths. These include contracts clinched last year worth a combined $171 million for the construction of two cycling park networks, which are expected to be completed later this year.
" There are many types of civil works, including highway bridges, airport infrastructure, drainage construction, and cycling paths. One area we' ve been focusing on in recent years is cycling paths for commuters. I call it commuter infrastructure," Toh Wat says.
Making sure roads and other infrastructure remain in tip-top condition is also a big part of OKP' s business. Its maintenance division carries out reconstruction work on an array of infrastructure and public facilities, including roads, pavements, guardrails, drains and bus bays.
OKP won three maintenance contracts last year. Two are from the Land Transport Authority (LTA) and one is from the national water agency PUB. Its maintenance business generated $61.7 million in revenue last year, accounting for 34% of OKP' s topline.
This dual focus - on building and maintaining key transport infrastructure -enables OKP to weather industry fluctuations. Construction projects provide revenue bursts, while maintenance contracts offer recurring income that cushions the business through slower cycles.
" I think contractors - the established ones and those that are financially healthy - are going to do well for at least the next two years," says Daniel Or, one of OKP' s executive directors and Toh Wat' s younger brother.
" If you can position yourself to take advantage of the over $50 billion worth of jobs and get even a small slice of it, I think you will do well for the next three to five years," says Daniel, referencing the $47 billion to $53 billion worth of construction contracts forecast by BCA to be awarded this year.
Contractors, the established ones and those that are financially healthy, are going to do well for at least the next two years, says OKP' s executive director Daniel Or
Turnaround after legal woes
The Or family' s optimism is noteworthy for another reason: OKP has been working hard to rebuild its reputation following two tragic accidents that occurred under its watch nearly a decade ago.
The first was a safety lapse in 2015 at the Yio Chu Kang Flyover that led to the death of a worker. Three others were injured. The company and one of its site supervisors were fined for the accident.
The second was the collapse in 2017 of a road viaduct under construction near the PIE exit to the Tampines Expressway. One worker was killed while 10 others were injured. One of OKP' s subsidiaries was fined and two employees were jailed in 2021 for failing to ensure the safety of their on-site workers.
That same year, the subsidiary launched arbitration proceedings against the design consultant, CPG Consultants. It won the case in 2023 and was awarded $43.8 million, which gave a huge boost to OKP' s bottom line that year.
" Back in July 2017, when the accident happened, everybody we knew said ' You' ll be out of business for sure' . We fought all the way in the State Court because we were charged by the Attorney-General' s Chambers. The trial ended in 2022. During this period, our subsidiary didn' t get any jobs," Daniel recounts.
The turnaround came after the court ruled in OKP' s favour in 2023. Earnings for last year came in at $33.7 million on record revenue of $181.8 million. The company earned $44.6 million in 2023 on revenue of $160.4 million. The drop in earnings last year was due to the absence of the arbitral award in 2023 for the case against CPG Consultants.
With a $600 million order book extending into 2027, OKP will focus on execution and selective bidding rather than chase volume at the expense of profitability or risk, says Daniel. " We are picking our battles."
OKP will indeed have to pick its battles carefully, as the construction sector in Singapore is crowded and continues to grapple with challenges like higher raw material and manpower costs.
' Crocodiles and alligators'
On their part, investors have no lack of companies to choose from. There are more than half a dozen construction and civil engineering stocks on SGX, all competing for the same pool of infrastructure projects from both the public and private sectors.
Some of these companies, just like OKP, also have their own property development arm. Combining construction with property development allows them to have greater control over projects and unlock higher profit potential, although this could also entail more risks and capital outlays.
OKP usually embarks on property development projects through joint ventures with other developers. Contributions from property development to its bottom line are not substantial, and the company is content to focus on its core construction business.
OKP' s closest peers include Hock Lian Seng Holdings , Ley Choon Group and Koh Brothers. These companies operate in the same core areas as OKP but differ in the extent of their involvement in public works and overseas markets. OKP' s only market outside Singapore is Australia, where it owns a freehold four-storey office building in Perth that is tenanted out to companies and government bodies.
Among these four companies, OKP' s latest order book of $600 million is the second largest. Koh Brothers leads the pack with its $829 million order book. Hock Lian Seng has the most net cash on hand, of about $159 million, followed by OKP, which has $109 million. On a per-share basis, however, OKP' s net cash of 35.3 cents is more than Hock Lian Seng' s 31.1 cents.
" I think everybody in this space has their own sweet spot," says Daniel. " There are plenty of jobs to go around. We wouldn' t want to interfere in their space, and I think they wouldn' t want to come into our space either. We' re like crocodiles and alligators."
For now, as motorists inch their way through yet another bottleneck or navigate a freshly cordoned-off junction, it' s a reminder to investors that every detour and delay feeds into a larger story - one that' s driving the momentum of companies behind the barricades, like OKP.
Watch OKP
More construction companies to benefit from expanded tax scheme from 2026. From BT Published Today &bull 12:06 PM
More construction companies to benefit from expanded tax scheme from 2026. From BT Published Today &bull 12:06 PM
No wonder this counter has been going up everyday due to this report..insiders always have the first info now is to earn reward today.
Watch out.
Cheers
Watch out.
Cheers
&lsquo Don&rsquo t miss the upcycle&rsquo Lim & Tan initiates coverage on OKP with &lsquo buy&rsquo and 93 cents TP
Nicholas Yon of Lim & Tan Securities has initiated coverage on OKP Holdings with a &ldquo buy&rdquo call and target price (TP) of 93 cents, identifying the stock as one to ride on Singapore&rsquo s construction upcycle.
With a FY2024 ended Dec 31, 2024 order book of $600.7 million and a &ldquo solid net cash position&rdquo , Yon believes that OKP boasts strong fundamentals, attractive valuations and a &ldquo stellar&rdquo track record.
In his Apr 1 report, Yon says: &ldquo Additionally, with its operating leverage, OKP is better poised to capitalise on the construction boom, allowing it to deliver record profits and potentially raise dividends in FY2025.&rdquo
Furthermore, he believes that the stock&rsquo s valuation is undemanding, noting that unlike many construction firms relying on financial leverage, OKP is cash-rich, which allows a strong margin of safety should liquidity margins arise.
&ldquo This financial strength also supports the potential for higher dividends, especially given that the majority owner, the Or (Or Kim Peow) family, holds a 54.9% stake in the company,&rdquo says Yon.
With this, his TP is based on an 8 times forward price-to-earnings ratio (P/E), which he notes is in-line with the peer average.
Yon concludes that OKP&rsquo s 35 cents per share net cash and ascribed 8 times P/E target is conservative, representing an around 21% discount to the trough P/E of 10.1 times in FY2016, which is when previous peak earnings came in at $14.5 million.
&lsquo Don&rsquo t miss the upcycle&rsquo Lim & Tan initiates coverage on OKP with &lsquo buy&rsquo and 93 cents TP
Nicholas Yon of Lim & Tan Securities has initiated coverage on OKP Holdings with a &ldquo buy&rdquo call and target price (TP) of 93 cents, identifying the stock as one to ride on Singapore&rsquo s construction upcycle.
With a FY2024 ended Dec 31, 2024 order book of $600.7 million and a &ldquo solid net cash position&rdquo , Yon believes that OKP boasts strong fundamentals, attractive valuations and a &ldquo stellar&rdquo track record.
In his Apr 1 report, Yon says: &ldquo Additionally, with its operating leverage, OKP is better poised to capitalise on the construction boom, allowing it to deliver record profits and potentially raise dividends in FY2025.&rdquo
Furthermore, he believes that the stock&rsquo s valuation is undemanding, noting that unlike many construction firms relying on financial leverage, OKP is cash-rich, which allows a strong margin of safety should liquidity margins arise.
&ldquo This financial strength also supports the potential for higher dividends, especially given that the majority owner, the Or (Or Kim Peow) family, holds a 54.9% stake in the company,&rdquo says Yon.
With this, his TP is based on an 8 times forward price-to-earnings ratio (P/E), which he notes is in-line with the peer average. Yon concludes that OKP&rsquo s 35 cents per share net cash and ascribed 8 times P/E target is conservative, representing an around 21% discount to the trough P/E of 10.1 times in FY2016, which is when previous peak earnings came in at $14.5 million.
As at 2.37 pm, shares in OKP Holdings are trading 3 cents higher or 5.09% up at 62 cents.
2 April 2025
Lim and Tan target price $0.93.
OKP is deeply unfervalued and cash rich!!!!
Lim and Tan target price $0.93.
OKP is deeply unfervalued and cash rich!!!!
Rightstock ( Date: 01-Apr-2025 10:40) Posted:
|
Volume has been relatively higher these days.
Yesterday, there were 195 lots bought after market has closed.
Something is brewing....
Yesterday, there were 195 lots bought after market has closed.
Something is brewing....
OKP possesses an extremely strong balance sheet, with net cash of S$109mln as of FY24, representing 63% of market cap. This translates to a trailing ex-cash PE of 1.9x and a FY25F excash PE of 1.3x. Lim and Tan securities expect OKP to be well supported by this growing war chest and also expect this cash to further build up in anticipation of prompt payments from its public projects as it runs down its order book.
OKP is currently trading at $0.585, up 3.5%. The market is beginning to realise how deeply undervalued is OSP!!!
Rightstock ( Date: 06-Mar-2025 18:28) Posted:
|
2025 Q& A with management (published 11Mar2025):
http://okp.listedcompany.com/qa_11032025.html
http://okp.listedcompany.com/qa_11032025.html
At 52.5 cents, P/E at 4.8 is one of the lowest, comparing to peers at 6~10.
Also, OKP has 40.5 cents per share of cash or eq.
This stock should be easily 60 - 70 series.
Also, OKP has 40.5 cents per share of cash or eq.
This stock should be easily 60 - 70 series.