OCK remains committed in the delivery of order book of more than RM410.0m, mainly from the JENDELA programme as well as the rollout of 5G network. With the Access Agreement (AA) with Digital Nasional Bhd (DNB) being completed, we expect the rollout of 5G network services to speed up over the foreseeable future to meet DNB’s target of reaching 80.0% of 5G population coverage by 2024.

OPTIMAX’s first satellite clinic in Skudai, Johor, and the new ACC in Bahau, Negeri Sembilan have both commenced operation in 3Q22. We expect the new ACC to have gestation period of less than 1 year, similar to other small ACC. To date, Optimax operates an extensive network of 13 ACC, 1 specialist hospital, and 1 satellite clinics, while eyeing another 5 satellite clinics that are currently undergoing renovation.

With approximately RM266.0m worth of property sales recorded during the quarter, 9MFY22 sales at RM744.0m is largely on track to meet our expectations of RM1.00bn for FY22f. Moving forward, OSK’s property development unbilled sales of approximately RM1.04bn (slightly up from RM976.0m recorded as at end-2QFY22) will sustain earnings visibility over the next 18-24 months.

We reckon that the construction segment may continue to bleed, given that the balance EPC works at Vietnam is expected to be recognised only in 2HFY23. Moving forward, outstanding orderbook of more than RM200.0m will provide revenue visibility over the next 2 years.

Albeit a potential recovery could take shape, we reckon that challenges may persist from the rising operational costs environment which may dampen the margins. Going forward, the outstanding construction orderbook of approximately RM435.0m (as at end-3QFY22) will provide earnings visibility over the next 2-3 years.

Moving forward, we expect the medical segment which makes up to 56.0% of total revenue in 3QFY22 to remain as the key contributor to the overall group revenue. This will be supported by progressive launches of new products that is in line with the growing demand. Also, two new products (Mermaid declotting device and IHS syringe infusion system) launching in 2HFY22 is expected to strengthen the contribution from the medical segment in FY23.

REXIT remained committed to grow its customer base in e-Cover, InfoGuardian, and e-PPA. The group is in negotiation with various potential customers, targeting to bring two new customers on board in FY24. The revenue generated from the two new customers is expected to be in both transactions and subscription basis. Meanwhile, the group has been continuously refreshing its e-Cover portal and engaging existing customers for the implementation of additional products and services.

Resin continued to see price erosion in 3Q22, largely due to the overhang resin supply in the market as well as the overall lackluster demand amid uncertain global economic condition. We expect price consolidation to continue in the resin market before producers clearing out inventory overhang to rebalance supply and demand.