Forecast unchanged. Given that the core earnings came in within expectations, we have maintained the core earnings forecast at RM484.1-525.8m for FY23-24f.
Maintained BUY with TP at RM1.41. We maintained BUY on OSK with a TP of RM1.41 (15.6% upside). 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.
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