OSK expects steady 2025 backed by core segment performance
OSK Holdings Bhd group executive chairman Tan Sri Ong Leong Huat
KUALA LUMPUR: OSK Holdings Bhd is confident of delivering satisfactory results for 2025, with its property development division as a key profit driver well-positioned for strong performance.
As of March 31, the group's unbilled sales stood at RM1.2bil, with minimal unsold completed inventory.
OSK has a total land bank of 2,083 acres with an estimated effective gross development value of RM17.7bil, located across the Klang Valley, Kedah, Penang, Negeri Sembilan, and Melbourne, Australia.
For the first quarter ended March 31 (1Q24), OSK recorded a slightly higher net profit of RM124.3 mil, up from RM122.9 mil a year earlier.
Revenue rose 8.9% to RM400.6 mil against RM367.9mil while earnings per share climbed to 6.03 sen from 5.96 sen previously.
'We are pleased with the solid start to the year and strong fundamentals across most core segments. Despite the challenging operating environment, our diversified business model has enabled us to sustain earnings and strengthen our fundamentals across key segments,' OSK Group executive chairman Tan Sri Ong Leong Huat said in a separate statement.
Under the industries segment, OSK said the cable division aimed to grow revenue by expanding its sales team and upgrading its Melaka factory. Operations at two newly acquired Johor Bahru factories began on March 6, 2025, with production set to ramp up progressively.
'With the new orders from the utility companies, we expect the division to continue to perform well. The IBS Division is expected to sustain its momentum, which is driven by a steady demand for its product and to provide a reliable revenue stream,' it said.
OSK said its hospitality segment is set to benefit from favourable tourism trends, with visa-free travel for Chinese and Indian nationals extended to December 2026.
'In addition, the completion of the Phase 2 refurbishment at Swiss-Garden Beach Resort Kuantan in 2Q25 will enhance guest experiences by offering upgraded facilities and an expanded capacity for corporate meetings and events.
'Our partnership with international operators for the rebranded hotels, including DoubleTree by Hilton Damai Laut Resort and Holiday Inn Express & Suites in Johor Baru is also anticipated to continue to deliver improved performance as they strengthen their brands' presence and market appeal,' it said.
Meanwhile, OSK said the growth in the financial services segment is expected to continue through the remainder of 2025, principally driven by the increase in loan portfolios, greater geographical coverage and new product offerings.
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