- OSK said, in a filing with Bursa Malaysia on Monday, that it recorded stronger sales revenue for its power cable and industrialised building system (IBS) wall-panel manufacturing, driven by both local and export sales.
KUALA LUMPUR (Nov 27): OSK Holdings Bhd's net profit grew 9% to RM123.03 million for the third quarter ended Sept 30, 2023 (3QFY2023), from RM112.85 million a year earlier, as earnings improved across its industrial manufacturing, hospitality, and financial services businesses.
This was despite lower contributions from the group’s property and construction segments, given that one of its ongoing projects has reached its final stage.
OSK said, in a filing with Bursa Malaysia on Monday, that it recorded stronger sales revenue for its power cable and industrialised building system (IBS) wall-panel manufacturing, driven by both local and export sales.
Meanwhile, the profit margin for the manufacturing segment also improved, in line with better factory utilisation rates and control of material usage.
OSK said its hospitality segment saw higher occupancy rates and average room rates in 3QFY2023, as demand for local tourism and meeting and event activities remained strong.
As for financial services, OSK said the improvement was driven by a larger loan portfolio, which rose to RM1.7 billion as at 3QFY2023, from RM1.1 billion as at 3QFY2022.
Group revenue grew 25% to RM433.64 million for 3QFY2023, from RM347.07 million a year ago.
For the cumulative nine-month period ended Sept 30, 2023 (9MFY2023), net profit rose 22% to RM369.16 million from RM303.04 million for the previous corresponding period, while revenue increased 18% to RM1.16 billion from RM988.19 million.
OSK said that as at 9MFY2023, the group’s unbilled property sales stood at RM1.2 billion, with minimal unsold completed stocks.
Its total land bank stood at 1,994 acres (806.94 hectares), with an estimated gross development value of RM15.5 billion, located in the Klang Valley, Sungai Petani, Butterworth, Kuantan, and Seremban, and in Melbourne, Australia.
OSK said the property development business will remain one of its key contributors going forward.
The group’s construction order book stood at RM319.6 million as at 9MFY2023.
On the group’s industrial manufacturing business, OSK said expansion plans for cable manufacturing facilities with new production lines, and the IBS factory with new lightweight products are currently in progress.
“With the targeted completion next year, the increased capacity and new products will enable this segment to tap into new markets and customers,” said OSK.
“Based on the assessment of the respective businesses, the group is confident to deliver satisfactory results for the remainder of FY2023,” it added.
Shares in OSK were trading one sen or 0.8% lower at RM1.22 at Monday's noon market break, giving it a market capitalisation of RM2.56 billion.
Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!