Stock Name: OKP
Company Name: OKP HOLDINGS LIMITED
OCBC Investment Research in a Mar 13 research report says: "OKP announced that it has increased its investment in quoted securities to $6.7 million, from $2.2 million previously. The latest acquisition brings quoted securities to 10% of the group's NTA of $67.3 million.
"Management disclosed that these quoted securities are investment grade perpetual bonds with an average yield of more than 5%. OKP said the rationale to buy these securities is to derive a higher yield on its cash kitty that amounted to $92.5 million at the end of FY2011.
"In addition, these securities may later be used as collaterals for OKP's financing of its property development projects, and with the relevant interest income used to offset the financing costs. Fair value estimate at 75 cents per share. MAINTAIN BUY."
Company Name: OKP HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 0.75 |
OCBC Investment Research in a Mar 13 research report says: "OKP announced that it has increased its investment in quoted securities to $6.7 million, from $2.2 million previously. The latest acquisition brings quoted securities to 10% of the group's NTA of $67.3 million.
"Management disclosed that these quoted securities are investment grade perpetual bonds with an average yield of more than 5%. OKP said the rationale to buy these securities is to derive a higher yield on its cash kitty that amounted to $92.5 million at the end of FY2011.
"In addition, these securities may later be used as collaterals for OKP's financing of its property development projects, and with the relevant interest income used to offset the financing costs. Fair value estimate at 75 cents per share. MAINTAIN BUY."
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