Company Background. OSK Holdings (OSK) is a conglomerate with diversified business interests in 5 core business segments with a presence in Malaysia and Australia. The 5 core business segments: property, construction, financial services & investment holding, hospitality and industries. OSK’s main subsidiaries include PJ Development and OSK Property.

Prospects. (i) Property segment will be supported by the progressive billings of on-going projects. The group has newly launched stage 2 of Melbourne Square high-rise apartment in Australia. (ii) Construction segment will focus to deliver current outstanding orderbook of RM415mil. (iii) The demand for financing is expected to remain strong as investment and business activities continue to gain strength, evidenced by higher loan disbursement in 1QFY23. (iv) The partnership with 2 rebranded hotels is expected to further enhance the group’s hospitality segment. (v) The industrial segment, comprising the manufacturing of cables and precast industralised building system (IBS) wall panels, is actively exploring domestic and export market opportunities.

Financial Performance. In 1QFY23, OSK posted a higher revenue of RM333mil (+8.7% YoY) with a PAT of RM116mil (+36.5% YoY). This was mainly due to the overall operating performance across all business segments showing improvement, underpinned by stronger consumer sentiment, recovering labour market conditions and the revival of tourism activities.

Technical Analysis. We believe buying interest for OSK is back after surging to a new multi-year high a few sessions ago. The stock’s move above the key RM1.00 resistance indicates that near-term uptrend may persist. A bullish bias may emerge above the RM1.06 level, with stop-loss set at RM0.98, below the 50-day EMA. Towards the upside, near-term resistance level is seen at RM1.15, followed by RM1.30.

Source: AmInvest Research - 26 Jun 2023