OKP's net profit crashed 60.3% to S$3.8m

Blame it on a surge in costs.

According to OCBC Invstment Research, OKP Holdings’ 4Q12 results were in line with its expectations, with net profit falling 60.3% YoY to S$3.8m (taking FY12 net profit to S$12.4m, 6% above its forecast and 53.4% lower than in FY11), due mainly to a surge in costs. 

Here's more:

Revenue rose 18.4% YoY to S$27.5m in 4Q12 (taking FY12 revenue to S$104.5m, slightly below our full-year revenue forecast), but its gross profit margin narrowed to 21.9% in 4Q12 from 64.8% a year earlier.

OKP declared a final cash dividend of 1.5 S cent/share, down from 2 S cents for FY11. Its construction orderbook remains strong at S$376.6m, with contracts lasting up to FY15, but its narrowing margins and feeble 4Q12 showing suggest difficulties in converting future revenue growth into profits.