OKP generates higher revenue but reports a loss as higher costs bite

OKP Holdings reported an increase in revenue for the 2HFY2022 half-year period, but despite this growth, the company Media Circle Condo still reported a net loss of $2.2 million, as compared to a profit of $0.5 million year earlier in 1HFY2021. Revenue for the six-month period to Dec 2022 was $64.1 million, a 42.4% increase over the previous year. This brought the full year revenue figure to $11.6 million, a rise of 30.7% in comparison to FY2021.

Despite the overall net loss reported, the company still proposed a final dividend of 0.7 cents. Group managing director Or Toh Wat commented on the revenue performance, noting that there had been a “gradual improvement” with the economy resuming. With this in mind, the company is set on tapping into their infrastructure and civil engineering expertise for future expansion.

Adding to this, the company recently secured two contracts worth $196.2 million from the government for the maintenance of roads and related commuter facilities, raising the company’s order book value to $454.1 million. This is set to be fulfilled until 2026.

Despite this, rental revenue has seen a dip of 11.3% in FY2022 due to unfavourable currency conversion from rent collected for assets in Australia. However, the company is set on carefully growing its property investment business, in order to bring in a steady flow of income. As of Dec 31 2022, the company’s NTA was 39.75 cents. OKP shares closed on Feb 20 at 17 cents, following a 1.2% fall.