PETALING JAYA: OSK Holdings Bhd is confident of delivering satisfactory financial results for the remaining quarters of 2022 amid worsening supply chain disruptions, persistent labour shortages across all industries and inflationary pressures.
“The group’s businesses were impacted to a certain extent. Measures are being put in place to manage the impact and will be closely monitored,” said OSK Holdings in a filing with Bursa Malaysia.
OSK Holdings is a conglomerate with diversified interests in property development and investment, financial services, construction, industries and hospitality with operations in Malaysia, Vietnam and Australia.
Its property development division would continue to be supported by the recognition of revenue from progress billings of the properties sold from ongoing projects.
“The division launched Mira, Shorea Park at Puchong in August 2021 and has recorded commendable take-up rates. Pipeline projects, which include LEA By the Hills in Melawati and Phase 8B in Iringan Bayu, and the existing ongoing projects will provide a sustainable revenue stream,” it said.
In Melbourne, Australia, the group will continue to focus on selling the balance of the completed residential units in Melbourne Square (MSQ) in 2022.
It noted that the opening of Australia’s borders to international tourist or investors would have a positive impact in attracting potential overseas buyers for the project, although the recent rise in interest rates in Malaysia and Australia might pose a challenge to the sales progress.
As at March 31, the group has effective unbilled sales of almost RM1bil with minimal unsold completed stocks.
The group has a land bank of 1,967 acres with an estimated effective gross development value of RM14.7bil in the Klang Valley, Sungai Petani, Butterworth, Kuantan, Seremban and Melbourne, Australia.
OSK Holdings said its property development division would remain one of the major contributors to the performance of the group for this year.
Meanwhile, its construction segment has an outstanding order book of RM210.8mil as at March 31 and it will replenish new orders from the internal projects launched by the property development division.
As for the industries segment, the cables division will be working on research and development of new cable products and exploring new market demand for other low and medium voltage cables.
On the hospitality segment, the lifting of containment measures and reopening of international borders had seen the group’s hotel division experiencing a surge in occupancy as room bookings while the request for event spaces saw a significant uptick.
The financial services segment is expected to continue to do well in 2022.
“RHB Group is expected to deliver steady returns to the group. Apart from the conventional money lending, OSK Capital Division will focus on expanding the financing portfolio in both civil servants and Islamic financing businesses in Malaysia,” it said.