OSK Holdings’ 2Q net profit rises 10%, pays 2.5 sen dividend

• The property segment contributed a quarterly revenue of RM212.67 million, compared with RM211.88 million in 2QFY2024.

KUALA LUMPUR (Aug 29): OSK Holdings Bhd's (KL:OSK) second-quarter net profit rose 10.33% to RM142.0  million from RM128.7 million a year earlier, on the back of higher earnings from its operating businesses.

Earnings per share for the three months ended June 30, 2025 (2QFY2025) increased to 4.59 sen from 4.16 sen in 2QFY2024.

Quarterly revenue rose 38.59% year-on-year (y-o-y) to RM510.61 million from RM368.42 million, driven by better revenue contributions from its financial services and industries segments.

“The group’s profit from its operating businesses rose 35% to RM81.5 million, and profit from its investing activities dropped slightly by 5% year-on-year to RM87.8 million, primarily due to the absence of a one-time gain from property disposal,” the group said in a bourse filing.

OSK declared an interim dividend of 2.5 sen per share, payable on Oct 16.

The group's net profit for the six months of FY2025 rose 5.82% to RM266.3 million from RM251.63 million a year ago. Six-month revenue increased 23.74% to RM911.19 million from RM736.37 million.

OSK said its property segment's quarterly pre-tax profit fell 16% to RM30.95 million from RM36.64 million in 2QFY2024, when there was a net gain of RM13.4 million. Excluding the net gain, the segment’s pre-tax profit would have recorded an increase of 33%.

The property segment contributed a quarterly revenue of RM212.67 million, compared with RM211.88 million in 2QFY2024.

The financial services segment recorded a 36% y-o-y increase in revenue to RM73.7 million from RM54.29 million, and a 17% rise in pre-tax profit to RM29.8 million from RM25.45 million.

This improved performance was primarily attributable to the increase in loan portfolio size in Malaysia and Australia. The outstanding loans disbursed were registered at RM2.6 billion at the end of 2QFY2025 compared with RM1.8 billion at the end of 2QFY2024.

The industries segment delivered a strong performance with revenue surging 163% y-o-y to RM198.8 million from RM75.72 million, as pre-tax profit jumped 143% to RM14.1 million from RM5.82 million. This growth was primarily driven by an increase in sales volumes in the cable division.

“The industries division benefitted from the commencement of operations at its newly acquired manufacturing facility in Johor Bahru which increased the production capacity of the cable division. Meanwhile, Acotec IBS Division continued to provide stable revenue for the segment, supported by sustained demand for its products,” OSK said.

The group's hospitality segment generated a quarterly revenue of RM25.4 million, a slight decrease from RM26.2 million in 2QFY2024. The segment reported a pre-tax loss of RM1.02 million, compared with a RM962,000 pre-tax profit previously.

The decline in profitability was primarily attributable to the ongoing Phase 2 refurbishment of the Swiss-Garden Beach Resort Kuantan involving the ballroom, meeting and convention facilities, restaurants and common area which affected major revenue sources, including food and beverage operations and convention business, the group said.

The investment holding segment contributed a quarterly pre-tax profit of RM81.7 million, an increase of 12% compared with RM73 million in 2QFY2024. The improvement in profitability was primarily attributable to increased earnings from RHB Bank Group.

As of June 30, the group's unbilled sales stood at RM1.3 billion. The group has a total land bank of 2,475 acres with an estimated gross development value of RM18.5 billion. These lands are located in the Klang Valley region, Kedah, Penang and Negeri Sembilan in Malaysia, and Melbourne in Australia.

OSK said its financial services segment is poised for continued growth in the second half of this year, driven by loans disbursed for the capital and consumer financing products.

The group also said that the completion of its acquisition of Wilayah Credit Sdn Bhd, which is involved in motorcycle financing, is expected to contribute positively to the group's profit in the remaining part of the year.

For the industries segment, the cable division is well-positioned for sustainable growth, supported by expanded production capacity in its Johor Bahru plant facilities since March 2025.

OSK expects the performance of its hospitality segment to improve going forward, supported by the strengthening recovery in both international and domestic travel demand, coupled with the completion of Phase 2 refurbishment of the Swiss-Garden Beach Resort Kuantan in August.

On Thursday, OSK’s share price rose 0.78% or one sen to RM1.29, giving the group a market capitalisation of RM4.05 billion.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.