Stock Digest - OSK Holdings Bhd - Well Diversified Mini-conglomerate

OSK Holdings Bhd (OSK) operations history dated back since 1963 as a smallscale local stockbroking company and has now evolved into a well diversified mini-conglomerate with 5 major business segments. Stable loan portfolio expansion and gradual property development launches will continue to anchor growth. We initiate coverage on OSK with a BUY call and fair value of RM1.41, based on sum-of-parts model by valuing its capital financing and property business with 0.8x of BV, while the construction, industries and hospitality segment are pegged at 9.0x PE to FY23f earnings contribution.