OKP Holdings (5CF) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 5.6% YoY to S$73.9m; gross profit climbed to S$20.8m from S$2.1m, while net profit fell 66.1% to S$12.1m, mainly due to the prior-year S$43.8m arbitral award.

• Record order book of S$706.9m provides revenue visibility through 2027.

Financial highlights

• Revenue increased S$3.9m YoY to S$73.9m; cost of sales declined 21.9% to S$53.1m.

• Gross profit rose to S$20.8m from S$2.1m, up 909.7%; gross margin reached 28.2% from 2.9%.

• Net profit was S$12.1m versus S$35.8m; net profit attributable to equity holders was S$11.9m versus S$35.6m, down 66.6%.

• Profit before tax fell 64.0% to S$14.0m; net profit margin was 16.4% versus 51.2%.

• Other gains declined to S$1.6m from S$45.1m, mainly reflecting the non-recurring S$43.8m Contract 449A arbitral award in H1 2023; higher deposit interest partly offset lower grants and disposal gains.

Outlook and guidance

• Order book reached a record S$706.9m at 30 June 2024, with projects extending through 2027.

• Phoenix Residences’ 74 units were fully sold, with TOP expected in H2 2024; The Essence residential JV project was completed.

• Priorities include using technology and innovation to improve operating efficiency, managing cash flow and maintaining a prudent capital structure amid cost pressures.

• Strategic partnerships are being explored to strengthen property development and investment activities, market presence and recurring income.