Company Update: 4 June 2026
OKP’s sizeable cash position and conservative balance sheet provide an important buffer against project execution risks, cost inflation and working-capital volatility. The strong liquidity position also supports performance bonding, procurement flexibility and the ability to bid for larger government-backed infrastructure projects.
Although the construction sector faces higher labour, material and energy costs, OKP’s established execution track record, public-sector focus and disciplined bidding approach should support margin stability. As industry requirements around manpower, productivity and compliance increase, stronger contractors such as OKP are better positioned to capture quality projects and convert backlog into sustainable earnings.
We initiate coverage on OKP Holdings Limited with an OUTPERFORM rating and a 12-month target price of S$1.31, based on a DCF-derived equity valuation with a 10% WACC and 2.0% terminal growth rate. Our target price implies upside of 64.1% from current levels.
Key risks include Project execution and cost-overrun risk, Labour availability and foreign-worker policy risk, Residual-input cost and energy-inflation risk, Orderbook replenishment and tender-pricing risk, Working-capital and cash-flow timing risk, and Public-sector concentration and policy timing risk.
