OSK's 2Q net profit jumps 50%, declares 2 sen dividend

KUALA LUMPUR (Aug 30): OSK Holdings Bhd's net profit for the second quarter ended June 30, 2019 (2QFY19) rose 50% to RM82.91 million versus RM55.3 million previously on better earnings mainly in its property segment.

Earnings per share of the diversified group rose to 3.99 sen from 2.66 sen previously.

Meanwhile, revenue for the quarter rose 33% year-on-year (y-o-y) to RM336.4 million from RM252.9 million.

The group declared a dividend of two sen per share for the financial year end Dec 31, which will be paid on Oct 3.

In a filing yesterday, the group said property segment's performance, which rose 60% in revenue or 2.49 times in pre-tax profit, saw a substantial improvement following the launch of the Home Ownership Campaign, which boosted the sales of most of its existing projects.

It said as at June 30, it has unbilled sales of RM1.62 billion with minimal unsold completed stocks.

Meanwhile, the hospitality segment's revenue fell 39% with a widened pre-tax loss of RM4.09 million mainly due to low occupancy and room rates suffered across all the hotels managed by the group.

The construction sector's revenue rose 7% y-o-y while pre-tax profit fell 77% due mainly to lower realisation of profit from internal projects such as Windmill and TimurBay.

Improved net profit in the quarter pushed up earnings for the first half, when net profit rose 34% to RM174.26 million from RM130.32 million previously, as revenue increased 12% to RM600.27 million from RM535.44 million a year ago.

For the rest of the year, the group said it is confident of delivering satisfactory results.

"The hospitality segment is expected to improve with marketing efforts to attract local and foreign travellers. Renovation plans for some of the hotel properties are underway. Occupancy and room rates are expected to increase once the renovations are completed," it said.

The construction segment will continue to focus on delivering on time its current order book, of which the outstanding value stands at RM336.63 million as at June 30.

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