Kuala Lumpur, September 3, 2025 — Shares of OSK Holdings Bhd (OSK) climbed 1.56% to RM1.30 as of 2:32 pm, driven by investor enthusiasm over the company’s strategic land acquisition in Rawang, Selangor. Trading volume reached 1.21 million shares, with the stock touching an intraday range between RM1.28 and RM1.31.
Analysts at Hong Leong Investment Bank Bhd (HLIB) reaffirmed their BUY recommendation, setting a target price of RM2.13, which implies a robust 66% upside from current levels.
Rawang Acquisition Boosts Growth Prospects
OSK, through its property arm, acquired three freehold land parcels in Bandar Country Homes, Rawang, Selangor, for RM58 million. The site spans approximately 14.48 acres and targets development of a high‑rise residential and retail project with a gross development value (GDV) estimated at RM1.26 billion. The development’s first launch is projected for 2027.
HLIB highlighted the favourable land cost-to-GDV ratio of just 4.6%, foreseeing a strong margin profile. The project is expected to yield around RM31 million in net profit per year from FY27 to FY33.
Healthy Financials and Diversified Growth Path
The acquisition expands OSK’s total landbank to 2,490 acres, representing a cumulative GDV of RM19.8 billion.
Additionally, HLIB observed the company’s diversified earnings base—including contributions from its private credit and cable businesses—is poised to support future growth. At current valuation levels, OSK trades at undemanding P/E ratios of 6.9× for FY25 and 6.6× for FY26, offering a projected dividend yield of 4.7% for FY25.
Market watchers are closely monitoring OSK’s development pipeline, with optimism anchored firmly on its strategically timed acquisition and balanced multi-engine expansion strategy.
