OSK Holdings Bhd’s property business is gaining traction, with 2Q26 sales jumping 94.8% quarter-on-quarter (QoQ) to RM337 million and putting the group on track to achieve its RM1 billion full-year sales target, according to Hong Leong Investment Bank Bhd (HLIB Research).
HLIB Research said OSK posted 2Q26 core PATAMI of RM141.9 million, up 4% QoQ and 1% year-on-year (YoY). This brought the 1H26 core PATAMI to RM278.4 million, 4.7% higher YoY and equivalent to 45% of the research house’s full-year forecast.
The stronger quarter was driven by property and industries, with property core profit benefiting from higher sales and progress billings from ongoing projects. HLIB Research also noted that the cables business saw improved sales to data centre and large-scale solar projects, while hospitality returned to profitability from the seasonally weaker first quarter.
Property launches reached RM501.2 million in 2Q26, bringing 1H26 launches to RM1.4 billion, up 60.5% YoY. 1H26 property sales stood at RM510 million, already reaching 51% of OSK’s RM1 billion target, while unbilled sales rose to RM1.46 billion.
HLIB Research expects a stronger 2H26 as OSK begins recognising contributions from its Australian property projects from 4Q26, while the cables segment could see lower maintenance costs, stronger data centre orders and potential US export sales.
The research house maintained its earnings forecasts and ‘Buy’ rating, while raising its target price to RM2.90 from RM2.85. At the reference price of RM2.07, this implies 40.1% capital upside and a total expected return of 43.2% including dividends.
HLIB Research said OSK’s solid management, valuation discount and improving operating momentum across several businesses support its positive view, adding that the stock could also emerge as a potential candidate for inclusion in an expanded KLCI-50.
