DBS likes OKP, the homegrown foundation, and structural designing organizations, for its sound order book, powerful venture pipeline, and solid net money position.
Begun by Or Kim Peow in 1966, OKP has some expertise in the development of streets, extensions and different foundations.
The greater part of its undertakings is from people in general segment, granted via Land Transport Authority (LTA) and Public Utilities Board (PUB).
OKP’s present net order book is about $330 million, with venture pipeline stretching out till 2019.
The Building and Construction Authority (BCA) evaluated the aggregate development contracts to be granted in 2017 to be between $28 billion and $35 billion, with around 70% from general society division, higher than the $26.06 billion contracts granted in 2016.
Up and coming real tasks incorporate the North-South Corridor and development of new MRT lines.
DBS likewise says there is the likelihood of privatization. Or, on the other hand, and family claim around 60% stake in OKP. Given 60% of its present market capitalization is supported by net money, which works out to be 23 pennies for every share, there is no need to tap the value market to raise reserves.
“We trust an 11x FY17F PE valuation is reasonable, in light of companion normal for the development stocks recorded on SGX. Target value works out to $0.45 per share… To be traditionalist, we
accept no new contract wins in our conjectures,” says DBS in the unrated Tuesday report.
Profit yield is alluring at an imminent yield of around 4%.
Shares of OKP are up 1 penny at 41 pennies.
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