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• OKP Holdings specialises in building and maintaining Singapore’s transport infrastructure such as roads, cycling paths, covered walkways and pedestrian bridges.
• Its record S$797.9 million order book, with projects extending to 2031, provides strong revenue visibility as the Government continues investing in transport links and neighbourhood connectivity.
• Profitability is strengthening too: 1H2026 net profit jumped 43.9% to S$27.5 million, while gross margin widened from 30.8% to 37.6%.
• Its balance sheet had S$166.4 million in net cash, excluding pledged deposits, at end-June to help fund its growing workload.
• At 61 cents recently (-16% year-to-date), the shares are valued at 6.2 times KGI's FY2026 earnings forecast, while the broker’s S$1.22 target price implies 100% upside.
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FY ended Dec
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2024
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2025
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2026F
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2027F
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2028F
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Revenue (S$m)
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181.8
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223.5
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262.0
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335.4
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330.8
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PATMI (S$m)
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33.7
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44.3
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53.2
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71.7
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74.2
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EPS (S$ cents)*
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6.27
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8.24
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9.90
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13.35
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13.82
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EPS growth
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n/a
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31.3%
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20.2%
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34.8%
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3.5%
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DPS (S$ cents)*
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1.43
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2.00
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2.60
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2.02
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2.10
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Dividend yield
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2.3%
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3.3%
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4.3%
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3.3%
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3.4%
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Net profit margin
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18.5%
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19.8%
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20.3%
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21.4%
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22.4%
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Net gearing
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(49.5%)
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(56.4%)
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(60.9%)
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(66.7%)
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(71.3%)
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P/E (x)
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9.7
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7.4
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6.2
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4.6
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4.4
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Source: Company data, KGI Research estimates and adjusted calculations
* FY2024–FY2028 EPS, DPS figures reflect three-for-four share bonus issue in Feb 2026. P/E ratios and dividend yields are calculated using a share price of S$0.61.
• Read excerpts of its report below .....
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Source
Excerpts from KGI report
Analyst: Chen Guangzhi
OKP -- On track for a record year on solid contract wins and widening margins
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▪ Projects secured in the past three years underpin margins.
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OKP
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Share price:
$0.61
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Target:
$1.22
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Gross margin expanded 6.8 percentage points to 37.6%.
Management linked the relatively high margin to the projects won over the past three years, while the results also highlighted better execution and project-stage profit recognition.
In-house manpower is the principal cost driver, with relatively limited subcontracting.
We therefore view workforce productivity and utilisation as central to sustaining profitability.
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| FY26 is poised to be a record year |
▪ First-half earnings are ahead of a simple half-year run rate, while operating cash flow rose 84.0% to S$32.2m.
This supports reinvestment alongside the 0.6-cent special interim dividend.
The subsequent S$21.0m operational property acquisition, with potential accommodation for up to 800 workers, fits OKP’s reliance on its own workforce.
▪ Government programmes support order replenishment. The S$797.9m backlog extends through 2031 and represents approximately 3.6 times FY25 revenue.
Beyond management’s positive outlook, public plans for about 55,000 BTO flats over 2025–2027, a 1,300km cycling network and Friendly Streets in all towns by 2030 point to sustained demand for neighbourhood connectivity.
These programmes align with OKP’s commuter infrastructure expertise; tender opportunities and margins will depend on competition and execution.
▪ Cash is being recycled into operating capacity. The 455 Jalan Ahmad Ibrahim site (JTC lease with 27.5 years left; in-principle approval for an 800-worker dormitory) supports the shift to in-house delivery that cut 1H26 cost of sales by 1.7% on 9.0% higher revenue.
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We reiterate our OUTPERFORM rating with a lower 12-month DCF-based target price of S$1.22, using a 12.0% WACC and 2.0% terminal growth rate.
 Chen Guangzhi, analystThis implies 100.3% upside.
The record order book supports earnings visibility, while our forecasts incorporate the operational property purchase without assuming dormitory cost savings.
Risks.
Key downside risks include
(i) margin pressure from heightened competition and input cost inflation;
(ii) slower-than-expected ramp of new contracts or projects; and (iii) execution risk on overseas expansion plans.
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See also:OKP: Plenty of Road Ahead — And the Market May Be Missing It
