Given that the reported earnings came in within expectations, we made no changes to our forecast. We re-iterate our BUY recommendation on OSK with an unchanged target price of RM1.41.

We adopted a sum-of-parts valuation by pegging 0.8x to its financial services and property development book value, while the construction, industries & hospitality segments are valued through P/E multiple of 9.0x based on their earnings potential in FY23f. The discount to its book value in both the capital financing and property development is to reflect the OSK smaller scale business against pure-play property and financial services players.