OSK 2Q net profit up 32%, pays 2.5 sen dividend Syahirah Syed Jaafar/theedgemarkets.com
August 29, 2017 18:57 pm MY
KUALA LUMPUR (Aug 29): OSK Holdings Bhd's net profit rose 32% to RM55.75 million in the second quarter ended June 30, 2017 (2QFY17) from RM42.25 million a year ago, on higher profit generated from the financial services and investment holding segment.
This was partly offset by lower contribution from the property, construction and industries segments.
Earnings per share rose to 4.03 sen from 3.05 sen. Quarterly revenue, however, fell 11.2% to RM274.85 million in 2QFY17 from RM309.53 million in 2QFY16.
The group also declared an interim dividend of 2.5 sen per share for the financial year ending Dec 31, 2017 (FY17), payable on Oct 11.
For the cumulative six months (1HFY17), the group's net profit slipped 1.7% to RM110.01 million from RM111.87 million a year ago, while revenue fell 12.2% to RM577.39 million from RM657.81 million in 1HFY16.
In a filing with Bursa Malaysia today, OSK attributed the weaker 1HFY17 performance to lower contributions from the property and industries segments, offset by higher profit recorded from the financial services and investment holding segment, as well as reduced loss in the hospitality segment.
Going forward, OSK said it is confident that the group will achieve satisfactory results for the remaining year.
It said performance of the property development division will continue to be driven by sales and progress billings from the existing projects and new projects to be launched in Malaysia and Australia.
"In Malaysia, the group has targeted to launch the first phase of new development namely Iringan Bayu in Seremban and Ryan & Miho in Petaling Jaya Section 13. As at July 31, 2017, the group has unbilled sales of RM1 billion and the land bank stood at 2,055 acres," it added.
As at June 30, 2017, OSK's outstanding construction order book stood at RM534 million, which is expected to contribute steadily to the group's profitability.
On its industries segment, OSK said it is anticipated to perform satisfactorily as it continues to tap on projects undertaken by the government and private sectors, as well as enhancing its profitability through improving production efficiency, cost control, monitoring and reporting.
OSK shares closed unchanged at RM1.60 today, with 99,200 shares done, bringing a market capitalisation of RM2.22 billion.
Sold back all OSK at 1.66, lock all paper profit, free up capital. Need free up capital to raise cash for UMWOG right 30sen subscription next + free warrant. Hope still have time to buyback before bonus share declare.
very obvious what they r doing.....collecting before push....this crap is so undervalued.... ultimately when u see the large cap property counters...everything seems exp...except this...eventually funds will just shift their allocations and start whacking it all the way up....due to its low free float...
The Disposal and Yarra Park Subscription are expected to increase the net earnings of OSKH Group by approximately AUD38.2 million (or RM129.0 million) and a foreign exchange gain on the total investment in Yarra Park of RM49.2 million which was previously recorded as foreign exchange reserve; or a total increase of 12.86 sen per share for the financial year ending 31 December 2017.
The above deal already completed in 8 Aug 2017, therefore the net gain of disposal of its 49% stake to EPF will realize in coming Q result to be release end of next month.
i. Reward the existing shareholders of the Company for their continuous support;
ii. Increase the number of Shares held by the Company's existing shareholders without increasing the percentage equity interest; and
iii. The adjusted market price of OSK Shares pursuant to the Proposed Bonus Issue is expected to result in the OSK Shares being more affordable in order to appeal to a wider group of public shareholders and investors. This in turn could possibly able to encourage trading liquidity of Shares on Bursa Securities and greater participation by investors as well as potentially broadening the shareholder base of the Company
• Convening of EGM to obtain the approval of the shareholders of OSK for the Proposed Bonus Issue ( 14 Nov)
• Announcement on the Entitlement Date ( end of Nov 2017 could be coincidence with higher Q3 result due to inclusion of massive net gain from 49% sell stake in Australia project to EPF)
• Listing of and quotation for the Bonus Shares on the Main Market of Bursa Securities ( mid of Dec 2017)
Following the bonus issue, warrant holders will get bonus warrant too. I suppose the warrant exercise price will also be adjusted down by the same proportion. Can anyone confirm ?
If that is so, it is better to put your bet on OSK-W.
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boon1515
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Posted by boon1515 > 2017-08-30 15:04 | Report Abuse
need wait OLH to push