OSK Property maintains RM1b launches amid slower market – CEO Ong Leong Huat

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KUALA LUMPUR (Apr 17): OSK Property Holdings Bhd group managing director and chief executive officer Tan Sri Ong Leong Huat conceded that the group had held back some launches last year amid a slower property market as the company waited for better timing to unveil its products.

But Ong said the group would maintain RM1 billion worth of launches, at least for the next one or two years to sustain earnings.

"The group will try not to hold land for too long as it will burden the cash flow. I know the industry often views us as having comparatively lower sales.

"But what is the point of boosting our sales for low profit? We focus very much on delivering essential value to the group," he told reporters after OSK Property's (fundamental: 2.3; valuation: 3) annual general meeting here today.

OSK Property has a 640ha (1,600 acre) land bank scattered across the Klang Valley, and Sungai Petani, Kedah. Ong said the land bank could generate a gross development value of some RM7 billion.

According to Ong, slowing property transactions were good signs as it signified the industry "is not getting overheated."

He, however, said real estate prices were still firm despite regulators's move to cool the market.

"Prices (for property) are still holding firm, it is the transaction that is slowing down, which is good, so that the property market will not be overheated," Ong said.

At 12.30pm, market break, OSK Property settled at RM1.91, up one sen or 0.5% for a market capitalisation of RM468.8 million.

Its share price compares to the company's latest reported book value per share of RM2.02

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)