Latest news with #OSK
The Star
5 days ago
- Business
- The Star
OSK's momentum to rebound across key segments
HLIB Research said on the current trajectory, the capital financing segment is poised to deliver record-high earnings in financial year 2025. PETALING JAYA: OSK Holdings Bhd 's performance is expected to accelerate meaningfully in the coming quarters, driven by broad-based recovery and strong order pipelines across its core businesses. Hong Leong Investment Bank (HLIB) Research said OSK reported a core profit after tax and minority interests (patami) of RM125.4mil in the first quarter of financial year 2025 (1Q25). The research house noted that the results were within its expectation, making up 22% of its full-year forecast. On a year-on-year (y-o-y) basis, OSK's pre-tax profit was flattish at minus 0.6%. HLIB Research said the lower contribution from the property development segment attributed to lower profit margin from existing projects compared to 1Q24. 'The decline in industries was due to operating expenses tied to newly acquired factories in Johor Baru, which reported pre-tax profit of minus RM6.3mil. 'Excluding the losses, the segment would have recorded a pre-tax profit improvement of 18.6%, in tandem with the higher sales volume. 'Overall, core patami increased slightly by 2.1% due to lower taxes,' the research house said in a report yesterday. The group's capital financing division recorded 1Q25 pre-tax profit of RM30.9mil, which was up by 18.2% y-o-y. The positive performance was supported by the strong loan growth across all segments from conventional, civil servant and Australia. 'Loan portfolio continues to show robust momentum, growing sizeably to RM2.43bil as at March 31, 2025, which was up by 11.3% quarter-on-quarter (q-o-q). 'The q-o-q loan growth was supported by all segments: conventional (up 11.3%), civil servant financing ( up 4.8%), Australia (up 11.3%),' HLIB Research said. The research house said on the current trajectory, the capital financing segment is poised to deliver record-high earnings in financial year 2025 and is likely to emerge as a key earnings driver, on par with the group's property segment. Meanwhile, property sales were impacted in 1Q25 as both Chinese New Year and Hari Raya fell within the same period, resulting in fewer working days and temporary disruption in transaction activity. 'That said, momentum is expected to rebound, supported by a robust portfolio of ongoing projects and an active launch pipeline slated for the coming quarters,' HLIB Research said.
New Straits Times
6 days ago
- Business
- New Straits Times
OSK, EPF JV in Melbourne sees strong sales
KUALA LUMPUR: OSK Holdings Bhd reported a 67 per cent take-up rate for Phase 2 of BLVD, a high-rise residential tower in Melbourne Square (MSQ), developed in partnership with the Employees Provident Fund (EPF). Sales efforts for Phase 1 are ongoing, while profits from Phase 2 are expected upon handover in early 2027. OSK, in its corporate results statement, said its property development division continues to be a key growth driver, with upcoming launches progressing as planned. The group remains focused on hitting construction milestones and controlling costs to ensure timely delivery and sustained profitability. For the first quarter ended March 31, 2025 (Q1 2025), OSK posted a 9 per cent year-on-year increase in revenue to RM400.6 million. Pre-tax profit remained steady at RM140 million, supported by its diversified business portfolio. Group executive chairman Tan Sri Ong Leong Huat noted that the group's diversified model has enabled it to sustain earnings despite ongoing economic challenges. The property segment contributed RM188.5 million in revenue and RM31.2 million in pre-tax profit, down from RM204.7 million and RM36.9 million, respectively, in Q1 2024, mainly due to the absence of a high-margin project. As of March 31, 2025, unbilled sales stood at RM1.2 billion, reflecting strong demand and a low level of unsold completed units. OSK's land landbank totals 2,083 acres, with an estimated gross development value (GDV) of RM17.7 billion across key locations in the Klang Valley, Kedah, Penang, Negeri Sembilan, and Melbourne. The property investment division continues to deliver consistent income from its office and retail leasing portfolio. Meanwhile, the hospitality segment posted RM23.4 million in revenue for Q1 2025, with a pre-tax loss of RM1.5 million, compared to RM24 million in revenue and a RM0.7 million loss a year earlier. The wider loss was attributed to refurbishment works at Swiss-Garden Beach Resort Kuantan, which temporarily impacted F&B and event revenues. The Phase 2 refurbishment is expected to be completed in Q2 2025, aimed at enhancing guest experiences and expanding event capabilities. Recently rebranded hotels, DoubleTree by Hilton Damai Laut Resort and Holiday Inn Express & Suites Johor Bahru, are also expected to strengthen their market positions in the hospitality sector. Ong noted that Malaysia's tourism outlook is upbeat, supported by extended visa-free travel for Chinese and Indian tourists until December 2026, which is expected to drive growth in both leisure and business travel. "With the strength of our diversified portfolio, we are confident of delivering satisfactory results for the remainder of 2025," he said.
The Star
6 days ago
- Business
- The Star
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.
New Straits Times
7 days ago
- Business
- New Straits Times
OSK posts 9pct revenue growth in Q1 2025, supported by diversified segments
KUALA LUMPUR: OSK Holdings Bhd recorded a 9 per cent year-on-year rise in revenue to RM400.6 million for the first quarter ended March 31, 2025 (Q1 2025), while pre-tax profit held steady at RM140 million, underpinned by its diversified portfolio. Group executive chairman Tan Sri Ong Leong Huat said, "Despite the challenging operating environment, our diversified business model has enabled us to sustain earnings and strengthen our fundamentals across key segments." The financial services segment saw revenue jump 27 per cent to RM67.9 million, with pre-tax profit rising 18 per cent to RM30.9 million, driven by loan portfolio growth in Malaysia and Australia. Outstanding loans rose to RM2.4 billion from RM1.7 billion a year ago. The investment holdings division posted a pre-tax profit of RM73.7 million, up from RM68.5 million, supported by stronger contributions from RHB Group. Revenue in the industries segment surged 41 per cent to RM120.8 million, though pre-tax profit slipped to RM5.7 million due to costs tied to newly acquired cable factories in Johor Bahru. Excluding those, segment profit stood at RM12 million. OSK said it is upgrading its Melaka facilities to boost capacity. The IBS division continues to generate steady revenue amid consistent demand. The property segment recorded revenue of RM188.5 million and pre-tax profit of RM31.2 million, down from RM204.7 million and RM36.9 million, respectively, in Q1 2024, due to the absence of a high-margin project. OSK is maintaining momentum in its property development activities, with upcoming launches on track and efforts focused on meeting construction milestones while managing costs. As of March 31, 2025, the group's unbilled sales stood at RM1.2 billion, with a minimal level of unsold completed stock, reflecting sustained demand. The group holds a 2,083-acre land landbank with an estimated effective gross development value (GDV) of RM17.7 billion across key regions in Malaysia and Australia. Meanwhile, the group's property investment division continued to generate stable income from its office and retail portfolios. The hospitality segment posted RM23.4 million in revenue for Q1 2025 with a pre-tax loss of RM1.5 million, compared to a smaller loss of RM0.7 million last year. The higher loss was attributed to ongoing refurbishments at Swiss-Garden Beach Resort Kuantan, which temporarily impacted revenue from F&B and MICE segments.
Yahoo
22-05-2025
- Business
- Yahoo
What Makes OshKosh (OSK) an Investment Bet?
Investment management company First Pacific Advisors recently released its 'FPA Queens Road Small Cap Value Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned -2.51% compared to a -7.74% return for the Russell 2000 Value Index. President Trump announced his tariffs on April 2nd, causing equity markets to decline sharply and increasing volatility. Additionally, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as Oshkosh Corporation (NYSE:OSK). Oshkosh Corporation (NYSE:OSK) is an industrial company, engages in the development and manufacture of purpose-built vehicles and equipment. The one-month return of Oshkosh Corporation (NYSE:OSK) was -11.01%, and its shares lost 14.85% of their value over the last 52 weeks. On May 21, 2025, Oshkosh Corporation (NYSE:OSK) stock closed at $98.48 per share with a market capitalization of $6.339 billion. FPA Queens Road Small Cap Value Fund stated the following regarding Oshkosh Corporation (NYSE:OSK) in its Q1 2025 investor letter: "Oshkosh Corporation (NYSE:OSK) is a specialty vehicle manufacturer that operates across three segments – Access Equipment (JLG lifts and telehandlers), Vocational (fire trucks, airport equipment, dump trucks, etc.), and Defense (which includes the new US Postal Service trucks). The Fund has owned shares of OSK since its inception in 2002 but has added and trimmed since then. OshKosh has a long history of earnings growth and strong returns on capital. In 2024, OSK shares declined because of lowered expectations for JLG earnings. The company's leverage is low, it has a long and successful operating history, and its shares trade at roughly eight times our estimate of normal earnings. We have incrementally added to our position." A worker welding an intricate frame in a factory for heavy construction machinery. Oshkosh Corporation (NYSE:OSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Oshkosh Corporation (NYSE:OSK) at the end of the fourth quarter, compared to 33 in the third quarter. Oshkosh Corporation (NYSE:OSK) announced Q1 2025 revenue of $2.31 billion, indicating a 9% year-over-year decrease, principally attributed to reduced sales in the Access segment. While we acknowledge the potential of Oshkosh Corporation (NYSE:OSK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Oshkosh Corporation (NYSE:OSK) and shared the list of undervalued stocks to invest in according to Goldman Sachs. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
