[%DuMP%]
Research by HLIB
Buy – TP RM2.21

“Solid start for FY24"

OSK reported 1Q24 core PATAMI of RM122.8m (+26.7% QoQ; +6.4% YoY). The results were within our expectation, making up 26.4% of our full-year forecast. The group is on track to record another year of solid growth anchored by property development from better progress billings and project cost savings, capital financing from higher loan portfolio and better economies of scale and industries from growing cables and IBS demand. Its associate RHB is also expected to deliver stable performance given improving capital market from realization of investment activities. Maintain forecast and BUY call with a higher TP of RM2.21 (from RM2.16) based on 30% discount to our SOP-derived value of RM3.06. The stock is poised for further re-rating given its exposure to key growth areas including capital financing, property development, cables and IBS.

Analyst:
Tan Kai Shuen, CFA
[%hNCE%]

$KLSE-OSK
Research by HLIB
Buy – TP RM2.21

“Solid start for FY24"

OSK reported 1Q24 core PATAMI of RM122.8m (+26.7% QoQ; +6.4% YoY). The results were within our expectation, making up 26.4% of our full-year forecast. The group is on track to record another year of solid growth anchored by property development from better progress billings and project cost savings, capital financing from higher loan portfolio and better economies of scale and industries from growing cables and IBS demand. Its associate RHB is also expected to deliver stable performance given improving capital market from realization of investment activities. Maintain forecast and BUY call with a higher TP of RM2.21 (from RM2.16) based on 30% discount to our SOP-derived value of RM3.06. The stock is poised for further re-rating given its exposure to key growth areas including capital financing, property development, cables and IBS.

Analyst:
Tan Kai Shuen, CFA
kstan@hlib.hongleong.com.my