Singapore’s Big Winner of the Week: OKP Holdings Ltd

Construction firm, OKP Holdings Ltd (SGX: 5CF), has gained 9.5% since last Friday’s close to end Thursday at S$0.23. With Singapore’s broader market, as represented by the Straits Times Index (SGX: ^STI), moving up by only 0.5%, OKP has certainly been a big winner here this week.

OKP is a local infrastructure and civil engineering company that specialises in the construction of airport runways and taxiways, expressways, flyovers, vehicular bridges, urban and arterial roads, airport infrastructure, and oil and gas-related infrastructure for petrochemical plants and oil storage terminals.

The company also carries out maintenance works for roads and roads-related facilities and has recently branched into property development as well.

On 2 February 2015, the company announced that it had won two design-and-build contracts, worth a total of S$143.8 million, from the Land Transport Authority (LTA). The contracts are for the “construction of sheltered linkways under the island-wide Walk2Ride programme”.

Introduced in January 2013, the Walk2Ride programme was started to promote the use of public transport through the building of sheltered linkways between “transport nodes” (such as Mass Rapid Transit stations) and “trip generating hubs” (like homes and public places).

The first contract, worth some S$61 million, includes the construction of sheltered linkways within a 200-metre radius of 38 Light Rail Transit (LRT) stations. The second contract, worth around S$83 million, includes expanding the coverage of the existing sheltered linkway network at some MRT stations and bus interchanges from the current 200-metre radius to 400 metres.

Mr Or Toh Wat, Group Managing Director of OKP, commented on the contract wins:

“With a focus on our core competencies in civil engineering and construction, we are excited to be awarded the opportunity to partner LTA for the island-wide Walk2Ride programme. While the construction landscape remains challenging, we are encouraged by these two contract wins as we enter 2015. Leveraging our established track record and experience with public and private sector projects, we are optimistic going forward and will continue to prospect opportunities to grow our business.”

Currently, the company has a gross order book of S$296.8 million, stretching all the way into 2019. OKP earned S$134.7 million in revenue for the 12 months ended 30 September 2014. Shares of OKP are currently trading at a historical price-to-earnings ratio of 23.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.