Following the recent merger, OSK Holdings now owns 89.4% of PJ Development and 99.9% of OSK Property, which has been delisted from Bursa Malaysia. The internal reorganisation of the group has resulted in a more dynamic and well-organised institution, which now sees its property division edging over contribution from financial services. Apart from an increase in its bottom line, the group’s total assets tripled to RM7.69 billion in FY2015 from RM2.63 billion in FY2012.

In FY2015, the property division contributed 71% of OSK Holdings’ revenue and 12% of earnings. According to its 2015 annual report, the group has unbilled sales of RM1.39 billion, which will help to sustain its revenue for the property division in the coming three years on a progressive basis.

“In this coming year (FY2016), our property division is gearing up for the launch of several new projects across Peninsular Malaysia with a total gross development value (GDV) of over RM1 billion,” it said, adding that the division continues to search for suitable land bank.

With a low gearing of 0.43 times as at Dec 31, 2015, along with a low level of unsold stock, OSK Holdings is in a good position to ride the property wave when a revival comes.

Contribution from OSK Holdings’’s financial services division comes from the equity accounting of its 10.13% stake in RHB Capital and its financing business under OSK Capital Sdn Bhd.

Last year was a good one for the construction division with the completion of one external and six internal projects with a contract sum of RM429.9 million. As at Dec 31, 2015, its construction order book stood at RM259 million and it targets to secure over RM700 million worth of contracts this year.

The industries segment comprises cable manufacturing under Olympic Cable Company Sdn Bhd (OCC) and industrialised building system manufacturing under Acotec Sdn Bhd. OCC saw some decline in business last year as the cable market remained challenging. OSK Holdings, however, plans to diversify from conventional power cables and expects to commence the manufacturing of oil and gas cables.

Through its hospitality arm, OSK Holdings runs the leading vacation club in Malaysia under the SGI Vacation Club (SGIVC) brand as well as the Swiss-Garden Hotel chain. As at Dec 31, 2015, SGIVC maintained its pole position as the No 1 vacation club operator in terms of size and number of members.

OSK Holdings, with Tan Sri Ong Leong Huat at the helm, has seen a major reorganisation since the disposal of its investment arm to RHB Capital. The latest merger has also resulted in a much larger and more diversified business group. While 2016 is expected to be a challenging year, the group is well positioned to continue growing its business for the long term, non-executive chairman Datuk Nik Mohamed Din Nik Yusoff said in the 2015 annual report.