OSK Holdings Bhd is optimistic that it would produce satisfactory results for the remainder of 2022 based on an evaluation of its various businesses.

For the third quarter ending September 30, 2022 (Q3 FY2022, the group reported better performance across all business segments, with the property development division and financial services division leading the way.

OSK's net profit for Q3 FY2022 increased by 42 per cent to RM113.37 million from RM79.89 million in the same period the previous year.

Revenue for the reviewed quarter climbed by 58 per cent, from RM219.36 million to RM347.07 million.

The group's property development division's Q3 FY2022 pre-tax profit surged 90 per cent to RM41.6 million versus a year ago, thanks to the high take-up rate and construction progress of ongoing projects such as Shorea Park, YouCity III, Bandar Puteri Jaya, and Iringan Bayu, it said in the Bursa filing.

"The performance of the property development division will continue to be supported by the recognition of revenue from progress billings of those properties sold from ongoing projects, including YouCity III, Mira, and various phases in our township, Iringan Bayu and Bandar Puteri Jaya.

"These projects will provide a sustainable revenue stream for the division for the remaining of the year and in the near future," the group said.

According to OSK, the group would concentrate its efforts in Australia on selling the remaining built-out residential units in Melbourne Square (MSQ).

Plans for MSQ's upcoming phases have been developed, and they will be ready to launch if the state of the market allows for the creation of a steady flow of activities, it said.

As of September 30, 2022, OSK had effective unbilled sales of RM1 billion and minimal completed inventory that was unsold.

The group has 1,931 acres of land that are strategically placed in Klang Valley, Sungai Petani, Butterworth, Kuantan, Seremban, and Melbourne, with an estimated effective gross development value of RM13.7 billion.

"The property development division will remain one of the key contributors to the performance of the group for the remaining FY2022," it said.

The property investment division recorded an RM7.5 million revenue for the quarter as the occupancy rate stabilised across its investment properties.

The division returned to the black with a pre-tax profit of RM0.6 million due to better debtors management which resulted in write back of provision for doubtful debts during the quarter under review.

The hospitality segment which was affected by Covid-19 safety measures previously is seeing an impressive turnaround, according to the group.

OSK said the hotels and resorts division under the hospitality segment rebounded with revenue increasing by fourfold, owing to the significant improvement in the occupancy and room rates across all its hotels.

It said that the demand for hotel rooms across all hotels under the group has shown significant improvement given the tourism activities.

On Sept 15, 2022, the DoubleTree by Hilton Damai Laut Resort (formerly known as Swiss-Garden Beach Resort Damai Laut), was reopened for business and it is expected to contribute positively to the group in the longer term, it said.

"We expect the pent-up demand for local tourism will continue for the remaining year," it said.