OSK’s net profit grows to RM123.03mil in 3Q

KUALA LUMPUR: OSK Holdings Bhd anticipates a satisfactory performance for the remainder of the year as it continues to implement long-term strategies and financial prudence.

“We are pleased that the group continued to deliver a strong financial performance in the third quarter of 2023.

“The group’s earnings should continue to be sustained by the strength in our property division, the growth in our financial services division and the scaling up of our industrial business segment,” said group executive chairman Tan Sri Ong Leong Huat in a statement.

In the third quarter ended Sept 30, 2023, OSK posted a net profit of RM123.03mil, which was up from RM112.85mil in the same 2022 quarter.

Basic earnings per share was 5.97 sen as compared to 5.47 sen in the comparative quarter.

The group reported revenue of RM433.64mil, up from RM347.07mil in the previous corresponding quarter.

According to OSK, its key revenue contributor, the property segment, registered a 12% increase in revenue to RM222.5mil, and a pre-tax profit of RM35.8mil during the quarter, on the back of property sales and construction development of ongoing projects in Malaysia.

The industries segment meanwhile is expecting a robust performance in 4Q on higher demand from both local and export markets.

“The cables and IBS divisions are committed to proactively seeking out new market opportunities and implementing strategic measures to enhance profit margins through production efficiency and implementation of raw material procurement and waste control measures,” it said.

In 3QFY23, the group’s capital financial division registered a 52% year-on-year (y-o-y) jump in revenue to RM46.3mil with a corresponding 47% y-o-y hike in pre-tax profit to RM22.5mil.

It said the growth could be attributed primarily to the heightened revenue and pre-tax profit generated from its expanded loan portfolio of RM1.7bil as at Sept 20, 2023, during the period under review, up from RM1.1bil in the 2022 period.

Over the nine months period, OSK announced a net profit of RM369.16mil, up from RM303.04mil in 9MFY22 while revenue rose to RM1.16bil from RM988.19mil in the same comparative period.

As at end-September 023, OSK said its property development division has unbilled sales of RM1.2bil with minimal unsold completed stocks.

It said its total land bank of 1,994 acres garners an estimated effective gross development value of RM15.5bil with land parcels located in the Klang Valley, Sungai Petani, Butterworth, Kuantan, Seremban, and Melbourne, Australia.