facebook(Stocks Discussion) SGX: OKH Global (SGX: S3N)? - Seedly
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Posted on 17 May 2019

(Stocks Discussion) SGX: OKH Global (SGX: S3N)?

Discuss anything about OKH Global SGX: S3N share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment in OKH Global SGX: S3N


2 answers

Discussion (2)

Agree with Ivan. OKH currently has three major industrial projects which it has built, completed and now experience difficulty in selling these units. In my view, OKH's auditor should have asked them to do an impairment review to determine if the current value of the unsold units in these3 projects are unjustified. In the past 3 years, industrial properties have been in a down trough and yet in the past 3 years, OKH global has not done an impairment on its industrial property units.

It is a red flag to me and makes me question if there are lapses in the internal and external audit processes of OKH global.




Ivan Gow

Level 3. Freshie

Posted on 24 Dec 2019

Just avoid this stock. The company is an industrial property developer who builds industrial properties in Singapore and sells them off. Since the downturn of industrial properties, it has been struggling to sell of its industrial projects. So instead of selling them, they are now forced to own them and lease them out. One of the them is at Loyang and based on JTC, URA data, a lot of its units are still empty and not leased.

While the company has stated a book value of 156 million for its unsold properties. I am very sceptical of this number because there are so many unsold and unrented out units in its books. Industrial land have only 30-60 year tenure in Singapore and with each passing year, their assets goes idle, more value is lost. Personally, I am applying a 30% discount to its stated book value and associates. This will mean a book value of 2-3 cents per share, which is just about where market is pricing it at now. The CEO is a long time civil servant turned property developer which worries me because he does not have much experience especially when his civil service experience comes from Ministry of Communication and not even in property developement.



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