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Research by Malacca
Buy – TP RM1.96

“Solid start for FY24"

• Forecast. Remain unchanged at RM474.3m and RM503.1m for FY24-25f.
• Upgrade to BUY with revised TP at RM1.96. We upgrade OSK to BUY (from Hold) and raise the TP higher to RM1.96 (18.1% upside) as we roll over to FY24f as we adopt a sum-of-parts valuation by pegging higher multiple of 1.0x (from 0.8x) to its financial services and property development book value as we believe the latter could be tagging the upcycle in the property sector amid the rising demand for data centers, while the construction, industries & hospitality segments are valued through P/E multiple of 9.0x based on their earnings potential in FY24f.
• Investment risks include weaker-than-expected property sales which may put a brake onto the progress of future launches. Potential default by their borrowers may result in slower contribution from the capital financing business segment.

Analyst:
Loui Low
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$KLSE-OSK
Research by Malacca
Buy – TP RM1.96

“Solid start for FY24"

• Forecast. Remain unchanged at RM474.3m and RM503.1m for FY24-25f.
• Upgrade to BUY with revised TP at RM1.96. We upgrade OSK to BUY (from Hold) and raise the TP higher to RM1.96 (18.1% upside) as we roll over to FY24f as we adopt a sum-of-parts valuation by pegging higher multiple of 1.0x (from 0.8x) to its financial services and property development book value as we believe the latter could be tagging the upcycle in the property sector amid the rising demand for data centers, while the construction, industries & hospitality segments are valued through P/E multiple of 9.0x based on their earnings potential in FY24f.
• Investment risks include weaker-than-expected property sales which may put a brake onto the progress of future launches. Potential default by their borrowers may result in slower contribution from the capital financing business segment.

Analyst:
Loui Low
louilow@msec.com.my