KUALA LUMPUR (July 13): Hong Leong Investment Bank (HLIB) research has maintained its “Buy” rating on OSK Holdings Bhd at RM1.05, with a higher target price (TP) of RM1.59 (from RM1.46), and said it believes the group will continue to show steady growth in FY2023, underpinned by an improvement in all segments.

In a note on Thursday (July 13), the research house said OSK’s property segment will benefit from a healthy pipeline of launches, pick up in domestic sales, as well as better site progress.

“For capital financing, we continue to see room for growth for its civil financing and Australia segments.

“In industries, both cables and IBS (industrialised building system) segments are enjoying strong demand with improved production efficiencies.

“For hospitality, improvement in tourist arrivals should benefit the segment.

“Finally, its contribution from RHB should also improve, given absence of Prosperity Tax, while the domestic banking sector is expected to remain resilient.

“Maintain Buy with a higher TP of RM1.59 (from RM1.46) based on 35% (from 40%) discount to SOP (sum-of-parts)-derived value of RM2.44. The stock currently provides a good 5.7% dividend yield,” it said.