OSK 2Q profit climbs 73% to RM103.61m, declares one sen dividend

KUALA LUMPUR (Aug 27): OSK Holdings Bhd's net profit climbed 73.18% to RM103.61 million or 5.02 sen per share in the second quarter ended June 30, 2021 (2QFY21) from RM59.83 million or 2.89 sen per share a year earlier as businesses were allowed to operate, although at lower operating capacities, despite the continuous lockdown.

Quarterly revenue jumped 53.07% to RM267.21 million from RM174.57 million, helped by its property, industries, capital financing and investment holding divisions, according to a bourse filing.

The company also declared an interim dividend of one sen per share to be paid on Sept 30, 2021.

OSK's property segment recorded RM173.5 million revenue compared with RM97.4 million in 2QFY20, contributed by the ongoing projects such as Ryan & Miho, YouCity III, Iringan Bayu and Bandar Puteri Jaya and cost savings on completed projects.

Meanwhile, the joint venture projects, Melbourne Square and Agile-Mont Kiara, contributed a total share of profits of RM23.4 million in 2QFY21 against RM16.7 million a year ago.

The industries segment's revenue rose to RM47.7 million compared with RM41.1 million a year ago, mainly due to higher production and delivery as the factories were allowed to operate during the quarter compared with complete closure for several weeks in 2QFY20.

Its capital financing division recorded RM24.8 million revenue, higher than RM21.9 million, on higher net interest income generated from the larger loan portfolio.

OSK, which holds a 10.13% stake in RHB Bank Bhd, said the investment holding division's revenue increased to RM39.56 million from RM29.28 million as RHB contributed a higher profit of RM68.4 million to the group compared with RM38.2 million in the prior year.

On a quarterly basis, net profit dropped 10.99% from RM116.41 million as revenue fell 17.77% from RM324.96 million in 1QFY21.

For the six months ended June 30, 2021, OSK's cumulative net profit soared 60.61% to RM220.02 million from RM136.99 million in the previous year, while cumulative revenue grew 37.62% to RM592.17 million from RM430.3 million.

Looking ahead, the group said it will continue with its prudent business strategies and financial discipline to weather the challenging economic environment due to the Covid-19 outbreak, adding that it is expected to continue to perform satisfactorily for the remaining financial year ending Dec 31, 2021 (FY21).

At the time of writing, shares of OSK had risen 0.5 sen or 0.56% to 89 sen, giving the group a market capitalisation of RM1.86 billion.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories