KUALA LUMPUR, Nov 25 — OSK Holdings Bhd’s net profit rose to RM107.58 million for the third quarter ended Sept 30, 2019, from RM63.52 million a year earlier mainly driven by its property and financial services businesses.

However, revenue slipped about a tenth to RM315.72 billion compared with RM351.24 million previously, the diversified group said in a filing with Bursa Malaysia today.

The property segment’s pre-tax profit improved substantially — up 115 per cent year-on-year (y-o-y) to RM56.1 million — due to higher share of profit of associated companies and reversal of costs provided no longer required upon completion of certain projects, OSK Holdings said.

The financial services and investment holding segment, meanwhile, boosted its pre-tax profit by 68.2 per cent to RM57.48 million, thanks to higher interest income, bigger contribution from its share of the RHB Group’s profit and lower financing cost incurred in the quarter.

The group’s three other business segments are industries (manufacturing power cables, wires and building materials), which saw a lower profit during the quarter under review, as well as the loss-making construction and hospitality operations.

On its prospects, executive chairman Tan Sri Ong Leong Huat said the board was confident that the group would deliver a strong set of results for the remainder of the year in spite of the challenging market environment.

In a press statement, he said the performance of the property segment in Malaysia would continue to be led by sales and progress billings from on-going projects.

Abroad, Ong said, the Melbourne Square project in Australia had recorded take-up rate of above 72 per cent since its launch with construction progressing as scheduled, and financial year 2020 was expected to see the maiden profit recognition from the project on completion and settlement of first stage.

He said the group also had unbilled sales of RM1.69 billion with minimal unsold completed stocks with a land bank of 696.87 hectares with an estimated effective gross development value of RM10.60 billion in the Klang Valley, Sungai Petani, Butterworth, Kuantan, Seremban and Melbourne, Australia.

He said the performance of the financial services and investment holding segment, which is dependent on RHB Group’s performance and business expansion of its capital financing portfolio, was expected to perform well in the last quarter of the year. — Bernama