DBS downgrades OKP to hold

Stock Name: OKP
Company Name: OKP HOLDINGS LIMITED

Research House: DBS Vickers

Price Call: HOLD

Target Price: 0.65

DBS Vickers reduced its rating on infrastructure and civil engineering company OKP Holdings to hold from buy and lowered its price target to $0.65 from $0.75.

OKP’s shares were down 6.8% at $0.55, but have risen about 3% so far this year.

The broker cut its 2012 earnings estimates for OKP by 16 percent due to risks of lower margins and slow recognition from its order book.

OKP’s first-quarter net profit fell 42% to $3.1 million and came in lower than DBS’ expectations.