Friday, July 14, 2017

OKP Update - After PIE Side Accident

I am very very upset when I saw the news this morning. I have attached the link of the news as below if you are not aware of this accident:

http://www.channelnewsasia.com/news/singapore/collapse-of-uncompleted-pie-viaduct-contractor-recently-fined-9030718

The share price down as much as 8% before OKP requested for halt this morning, but share price is not my main concern with my investment in OKP. I did some research before I bought 16 lots of their shares at 43 cents, and in fact I have to admit that I didn't do my homework properly as I am not aware of their 2015 Yio Chu Kang Accident which happened in 2015! I didn't found any related information on their annual report, and all I can found on Google news before my investment was they win another contract from JTC.

If you read my previous post of OKP, I did mentioned about the company received several safety awards: One is from Changi Airport Group in recognition of their commitment to achieve Zero Safety Infringement for works at Seletar Airport; and the other two from LTA. One is for category 2 for companies that have achieved above 400,000 ACCIDENT-FREE MAN HOURS WORKED, and the other is for the Major Category for Contract ER458. I opened their annual report 2015 and did not found any relevant information regarding the Yio Chu Kang accident too. (If it was mentioned in any of their annual report kindly update me.. but I couldn't find any relevant information!) These information was found in annual report 2016, and there were similar information found in annual report 2015 that shows the company cares for safety. I strongly believed that "safety" is one of the key element that a company must have in their core value in order to grow! Yes OKP won contracts after contracts, but I believed that if they don't care about safety and the QUALITY OF THEIR WORK, there will be a day that they are unable to win any contract anymore! And their strategic plan to expand to other countries won't succeed as I strongly believed that SAFETY is also their main concern too!

I saw some people said that this is a risk when you invest into construction companies, but I believed this is a risk when you invest in any company as long as they hire people to generate revenue for them! Workplace safety is very important!!

I will closely monitor the LTA and MOM investigation. As a shareholder I am very upset to see the company I invested is involved in this kind of accident. Please be serious when it comes to safety..

No comments:

Post a Comment