OSK’s 3Q net profit rises 42% as all business segments see improved performance

• The group believes its property development division will remain one of the key contributors to its performance for the remaining part of FY2022.

KUALA LUMPUR (Nov 29): OSK Holdings Bhd’s third quarter net profit rose 41.9% to RM113.4 million, from RM79.89 million a year earlier, with all business segments registering a better performance.

Earnings per share for the quarter ended Sept 30, 2022 (3QFY2022) grew to 5.5 sen from 3.87 sen, OSK said in a bourse filing.

The group said its hotels and resorts busness under the hospitality segment returned to profitability during the quarter, while its other segments — property, construction, industries, and financial services and investment holding — saw an improved performance.

OSK’s revenue increased 58% to RM347.1 million, from RM219.4 million in 3QFY2021.

For the first nine months of the period (9MFY2022), net profit rose to RM305.87 million from RM299.9 million in the same period a year earlier, as revenue increased to RM988.19 million from RM811.53.

OSK said that its nine-month revenue in the hospitality segment rose by more than three folds to RM62.4 million.

“Such impressive improvement was underpinned by pent-up demand for rooms as tourism, meeting and convention activities, which improved the occupancy and room rates across all the hotels, coupled with its ability to continue to adopt the cost optimisation strategies,” it said.

The construction segment was the only segment that incurred a loss during the nine months due to the absence of external projects, OSK said.

The group believes its property development division will remain one of the key contributors to its performance for the remaining part of FY2022.

As at Sept 30, OSK said its effective unbilled sales stood at RM1 billion, with minimal unsold completed stocks.

The group also said it has a land bank of 1,931 acres with an estimated effective gross development value of RM13.7 billion, located in the Klang Valley, Sungai Petani, Butterworth, Kuantan and Seremban, as well as in Melbourne, Australia.

OSK’s share price closed 2.2% or two sen higher at 93 sen on Tuesday (Nov 29), bringing the diversified group a market capitalisation of RM1.95 billion. Year-to-date, its shares have gained 6.9% or six sen, from 87 sen.