OSK Holdings optimistic for strong 2024 results

KUALA LUMPUR: OSK Holdings Bhd remains optimistic in delivering satisfactory results for the remainder of 2024, bolstered by healthy unbilled sales in the property development division, steady growth in the capital financing business.

“As we move forward, we remain dedicated to seizing opportunities and overcoming challenges to sustain our growth trajectory," group executive chairman Tan Sri Ong Leong Huat said in a statement.

OSK kicked off FY2024 in a healthy financial position, with a net gearing ratio of 0.39x and cash and bank balances totalling RM848.2mil as of March 31, indicating financial stability and liquidity.

The group’s net profit rose 6.8% to RM122.9mil, or earnings per share of 5.96 sen in the first quarter ended March 31 (1Q24) compared with RM115.1mil, or 5.58 sen in the same corresponding period last year.

Revenue grew 10.4% to RM367.9mil in 1Q24 against RM333.2mil a year prior.

"Our 1Q results reflect the outcome of our continued commitment to execute growth strategies for our core businesses with a long-term focus in mind. The healthy growth in our property and financial services segments, along with stable performance across other segments, underscores our resilience and commitment to delivering continuous value to our stakeholders,” Ong said.

OSK’s property segment demonstrated positive growth, with revenue reaching RM204.7mil, up 6% to the RM192.4mil recorded in 1Q23. The segment's pre-tax profit rose by 27% to RM36.9mil from RM29mil in 1Q23.

“As of March 31, 2024, the group's unbilled sales stood at RM1.1bil. The group has a total land bank of 1,898 acres with an estimated effective dross development value of RM16.2bil,” OSK said.

Meanwhile, its financial services segment delivered a strong result, with a 50% increase in revenue to RM53.2mil compared to RM35.6mil and a 42% rise in pre-tax profit to RM26.1mil compared to RM18.4mil in 1Q23.

This improvement was driven by growth in its loan portfolio from RM1.3bil in the previous year to RM1.7bil as at the end of 1Q24.

The investment holding segment contributed a pre-tax profit of RM68.5mil in 1Q24, compared to RM72.6mil in 1Q23.

Its industries segment’s pre-tax profit notably climbed by 59% to RM10.1mil underpinned by a 6% increase in revenue to RM85.8mil.

The hospitality segment reported stable revenue of RM24mil, consistent with the previous corresponding quarter. The segment recorded a slight increase in pre-tax loss to RM0.7mil due to higher depreciation following the refurbishment of Swiss-Garden Beach Resort Kuantan.