OKP Holdings' profits crashed 77% to SGD0.7m

Anguilla Park drew big time costs.

According to OSK, road builder OKP Holdings recorded a PATMI of SGD0.7m (-77.0% y-o-y) in 2Q13, even as revenue grew 27.5% y-o-y to SGD30.1m, as a result of higher costs incurred on the property project at Anguilla Park, its maiden foray into property development.

Here's more:

Gross margins are expected to remain low until the development is completed towards end 3Q13. Order book currently stands at SGD428.8m, of which, SGD221.3m is expected to be recognized between 2H13 and 2015.

Its strong balance sheet (net cash of SGD0.15 per share) puts it in a good position to tender for new projects and add to its order book. However, with lower margin assumptions, we have adjusted our estimates and arrive at a TP of SGD0.35.