KUALA LUMPUR: OSK Holdings Berhad believes that the positive performance in the first half of 2024 validates its growth strategies and demonstrates its ability to deliver strong results across diverse market conditions.
Group executive chairman Tan Sri Ong Leong Huat said that OSK will continue to focus on driving sustained growth.
"With the momentum gained in the first half of the year, we are well-positioned to achieve our long-term objectives," he said.
OSK reported steady growth in its financial performance for the first half of 2024 (1H 2024), driven by improved results in the property development and financial services segments.
The group's total revenue for the first six months of this year was RM736.4 million, a slight increase from RM730.6 million in the same period last year (1H 2023).
Pre-tax profit rose by 4.0 per cent to RM282.8 million compared to RM271.9 million in the same period last year.
"Our first-half results reflect the strength of our diversified business model and the success of our strategic initiatives," said Ong in a statement.
The property development segment's pre-tax profit grew by 17 per cent to RM73.5 million, despite a slight 2.0 per cent dip in revenue to RM416.5 million for 1H 2024 compared to the previous year.
This profit increase was driven by ongoing projects such as LEA by The Hills in Taman Melawati, Mira and Anya at Shorea Park in Puchong, Rubica in Butterworth, Iringan Bayu in Seremban, and Bandar Puteri Jaya in Sungai Petani.
With unbilled sales standing at RM1.6 billion and a total land bank of 1,883 acres with a gross development value of RM15.3 billion, Ong said that the property development segment is expected to remain a key profit contributor in the coming quarters.
He also noted that newly launched projects, including Nara at Shorea Park in Puchong and Alia at Mori Park in Shah Alam, have yet to contribute significantly to revenue and pre-tax profit as they are still in the early stages of development.
The property development segment also expanded its land bank by entering into agreements to acquire about 356 acres of freehold land in Bedong, Kedah.
Ong said that this acquisition, once completed, will strengthen the group's presence in Kedah, following the success of the Bandar Puteri Jaya township, with an estimated gross development value of RM972.6 million.
Meanwhile, the property investment division generated stable rental revenue from its office and retail assets, according to Ong.
He added that the 1H 2024 results were further supported by a share of profit from the disposal of an office tower by its joint venture, offset by a share of fair value loss in an associate, resulting in a total net gain of RM13.4 million during the period.