KUALA LUMPUR: OSK Holdings Bhd's net profit rose to RM536.47 million in the financial year ended Dec 31 2024 (FY24) from RM466.95 million previously.
The group's revenue edged up four per cent to RM1.66 billion, while pre-tax profit climbed 10 per cent to a record RM611.4 million from RM555.1 million in FY24.
"Core operating profit also saw an 11 per cent increase to RM310.2 million, while profit from investing activities grew nine per cent to RM352.2 million, underpinning the group's strength and adaptability in a competitive market," it said today.
For Q4 2024 compared to Q4 2023, OSK achieved a four per cent revenue increase to RM440.4 million, while pre-tax profit rose 23 per cent to RM172.3 million, driven by stronger performance across most business units.
Core operating profit increased by 11 per cent to RM95.5 million, and profit from investing activities grew 38 per cent to RM92.1 million, largely supported by higher profit contributions from RHB Bank Bhd.
"Our solid and steady performance in 2024 reflects the group's resilience and strategic focus on strengthening our core businesses while capturing new opportunities for growth," said OSK group executive chairman Tan Sri Ong Leong Huat.
OSK expects its property segment to be a key profit driver.
The segment recorded a higher pre-tax profit of RM154.3 million in FY24, up six per cent from FY23, despite a five per cent decline in revenue to RM877.3 million.
In FY24, OSK Property launched projects with a total gross development value (GDV) of RM1.3 billion, which will sustain its revenue contribution in the next two years.
Other than the launches of the following phases of the existing development, the segment re-entered the Shah Alam high-growth location with the launch of Alia at Mori Park in Q4.
Over in Melbourne, OSK's joint venture project with the Employees Provident Fund Malaysia, Phase 2 of BLVD in MSQ, has recorded a 63 per cent take-up rate for its 602-unit high-rise residential tower.
Profit recognition will crystallise upon completion of settlement and handing over of the property to purchasers at a later stage, it said.
As of Dec 31 2024, OSK's unbilled sales stood at RM1.1 billion with minimal unsold and completed inventory.
The group maintains a landbank of 1,744 acres with an estimated effective GDV of RM15.7 billion.
OSK said its financial services segment continued its strong growth trajectory in FY24 with revenue rising 33 per cent to RM227.0 million and pre-tax profit increasing 21 per cent to RM103.0 million.
This was fuelled by business expansion in Malaysia and Australia, growing its loan portfolio to RM2.2 billion in FY24, compared to RM1.7 billion a year earlier.
The hospitality segment also delivered steady growth in FY24, with revenue increasing by 10 per cent to RM108.8 million and pre-tax profit improving by 40 per cent to RM4.6 million.
This was driven by strong occupancy rates, higher average room rates, and increased demand for corporate events and conventions.
The successful refurbishment of Swiss-Garden Beach Resort Kuantan in December 2023 further contributed to higher revenue from new market segments.
The segment is set for further expansion in FY2025, supported by favourable market conditions in Malaysia's tourism industry.
"The extension of the visa-free period for China and India passport holders until December 2026 is expected to drive both leisure and business travel to Malaysia," it said.