OSK (5053)-Main market, Property

HLIB reiterates BUY with a higher TP of RM2.37 (from RM2.21) based on a lower 25% discount (from 30%) to our SOP-derived value of RM3.16, reflecting the growing prominence of its business segments. The TP is conservative, implying an FY24/25/26 PER of 9.8/9.2/8.7x. Capital financing is the primary growth driver with an impressive 5-year PBT CAGR of 25.9%. Its Australia and civil servant segments should continue to grow strongly, making the group a rising force in the regional private credit market. Property, cables, and IBS segments are also growing steadily. The stock is poised for further re-rating given its exposure to key growth areas, yet valuation remains undemanding

Technical review: Pending a triangle breakout to advance further towards 1.72-1.80-1.88 levels 

✅Current price: RM1.60
✅Entry: RM1.55-1.57-1.60
✅Resistance: RM1.72-1.80-1.88
✅Cut loss: RM1.53
✅Risk profile: Low
 

Source: Hong Leong Investment Bank Research - 19 Jun 2024