OKP Holdings (5CF) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 13.3% to S$181.8m, supported by construction and maintenance growth; gross margin expanded to 32.0%.

• Construction and maintenance contributed 96.7% of revenue; the S$600.7m order book provides project visibility through 2027.

Financial highlights

• FY2024 gross profit increased 135.4% to S$58.2m from S$24.7m; gross margin rose 16.6 percentage points to 32.0%.

• Net profit was S$32.8m, down 30.9%; profit before tax was S$38.1m, down 25.6%, and net profit attributable to equity holders was S$33.7m, down 24.5%.

• 2H2024 revenue increased 19.3% to S$107.9m.

• Free cash and cash equivalents rose 52.1% to S$124.3m; net tangible assets increased 20.0% to S$201.4m.

Outlook and guidance

• The S$600.7m construction order book, up 15.8%, provides project visibility through 2027.

• BCA forecasts 2025 construction demand of S$47b–S$53b nominally, or S$35b–S$39b in real terms, and annual demand of S$39b–S$46b in 2026–2029.

• Demand drivers include Changi Airport Terminal 5, Marina Bay Sands expansion, public housing, the TEL Extension, Cross Island Line, Woodlands Checkpoint extension and Tuas Port.

• Priorities include cost and cashflow discipline, productivity-enhancing technology, earnings diversification and recurring income streams.