“Excluding its sizeable net cash balance of $115 million, OKP trades at just 6 times ex-cash P/E, or a deep 30% discount to its peers’ average of 13 times FY2025 P/E per Bloomberg, suggesting room for a valuation re-rating,” writes the team in their Sept 22 un-rated report.
UOB Kay Hian’s (UOBKH) Singapore research team has identified OKP Holdings (OKP) to be a “bargain” in Singapore’s infrastructure upcycle.
The team notes that OKP’s “undemanding” valuation is backed by its strong growth in earnings. In the 1HFY2025 ended June, the group’s net profit surged 61% y-o-y to $19.1 million, backed by expanded margins driven by “higher quality” projects. This translates to an FY2025 price-to-earnings ratio (P/E) of 9 times.
