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The agreement to terminate the viaduct contract with LTA. 2018.
Bread and butter projects for OKP-- maintenance.
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Some questions wrote in prior to AGM
It took a long time to build up a position in OKP. This was 4-November-2020.
AGM in 2023, where its fortune were starting to turn for the better.
The viaduct collapse was followed by mutual cancellation of the project. Shortly after, employees and directors were hauled to court.
All troubles do come to an end. Things start turning for OKP, beginning with Mr Or Toh Wat having his charges withdrawn. Then in 2019, the arbitration between CPG Consultants and OKP came to a close, awarding some 40++m to OKP. At the same time, the valuations of the shophouse properties began appreciating as the world fought COVID.
When 40++m were finally transferred to OKP, the market was very disappointed when there are no special dividend. Instead, the management was awarded directly by bonuses. Whether the investors believed the explanation given by directors during the AGM then (it was family tradition to withhold all dividends payout to the directors for one year, for financial prudence) or that the market has a short memory, the price did recover a little.
During the last two years, OKP won tenders for various cycling track projects, and they turned out to be extremely capital-efficient (high gross profit margin). The management was quite confident that the margins could be maintained.
Yesterday's result release reflected that confidence. A special dividend was also declared (2.5 cents).
The share price was then between 50-90+ cents a share.
Perhaps today's move signifies some kind of recovery. But I am pragmatic-- I believe that being project-based, earnings are volatile and hence thinking in terms of price-earnings ratio is a little inappropriate.
***
I think I will remember today for some time.
OKP is, by far, my biggest position, ever. I had over 540,000 shares at one point. For years I have been telling my friends to buy OKP when prices was depressed (around 19 cents). I shared what I knew but few are convinced.. and even those who were convinced could not withstand its lack of liquidity.
The lack of liquidity means there will be no exit doors should my friends wish to sell. I had to adsorbed a modest (retrospectively) amount of shares from a friend, using the open market, on the day's bid-sell price, because that friend could no longer endure the liquidity.
I looked stupid for almost seven years.
Today's +20% move elevated my portfolio beyond S&P 500's return (at last). My portfolio was severely impacted by realized losses in Central China Real Estate. That realized loss alone, was 20% of my portfolio size, and it crippled my confidence and XIRR.
Those losing years brought back a little sense of empathy. I began to understand why some of my friends bought crypto, or meme stocks. I probably wouldn't feel so sympathetic if I never have lost money. Success in my earlier years blinded me from pain.
Losing money in investments in 2022 and 2023 wasn't the only
I started having issues at my workplace in 2023. My mum health (and still is) had issues, and I seen the inside of an A&E more than I wished to.
***
Truth to be told, I was looking at my phone with wet eyes as the market opens. I was at TTSH with my mum... and I told my mum we can afford a little luxury today.
Instead of queueing up with 30 over people for coffee in TTSH's canteen, I went next door and bought us a couple of latte. Instead of just having bread and butter sandwich prepared from home, I bought a pot of hotpan chicken from the Korean food stall.
Thank you very much, OKP. Gratitude is all I have for what I experienced today.
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