OSK’s 3Q profit up sevenfold

KUALA LUMPUR (Dec 1): OSK Holdings Bhd saw its net profit jump almost sevenfold to RM381 million in the third quarter ended Sept 30, 2015 (3QFY15), from RM55.14 million last year, due to contributions from the newly acquired subsidiary companies, OSK Property Holdings Bhd (OSKP) and PJ Development Holdings Bhd (PJD).

The group saw its revenue for 3QFY15 surge 19-fold to RM275 million from RM14.38 million a year ago, its filing with Bursa Malaysia yesterday showed.

Due to the same reasons, the company’s net profit soared threefold to RM476.05 million in the cumulative nine-month period ended Sept 30, 2015 (9MFY15), from RM149.97 million in the previous year.

Revenue for 9MFY15 also rose almost sevenfold to RM302.16 million from RM44.26 million in 9MFY14.

It said OSKP’s ongoing projects are expected to generate positive earnings for the remainder of the year.

Meanwhile, PJD’s Genting Windmill Upon Hills, which was launched in May, is expected to contribute to the group’s future earnings.

OSK Holdings closed three sen or 1.83% lower at RM1.61, valuing it at RM2.27 billion. Year to date, the stock has lost 15%.

This article first appeared in The Edge Financial Daily, on Dec 1, 2015. Subscribe to The Edge Financial Daily here.