VS Industry FY earnings surge nearly 150%, upbeat on FY16

KUALA LUMPUR: V.S. Industry Bhd, which saw its net profit surge 147.5% to RM132.74mil in the financial year ended July 31, 2015 (FY15) against RM53.63mil, is optimistic the group will perform well for the next financial year.

The electronics manufacturing services (EMS) player said on Tuesday the group’s operational environment remains strong in  Malaysia.  

“With continued strong support from the existing customers, new potential customers and the strengthening of US dollar, the board is optimistic that the group will perform well for the next financial year,” V.S Industry said in the notes accompanying its financial results. 

Managing director Datuk Gan Sem Yam said: “Going forward, despite the ongoing economic climate, we intend to continue improving our performance by ably supporting our customers, becoming more efficient in production and further developing our research and development capabilities to hone our competitive edge.” 

“We are confident that these strategies will continue to take our current financial year to greater heights,” Gan said. 

For the FY15, the group recorded a revenue of RM1.93bil, an increase of RM221.8mil, or 12.9% compared to the preceding year. Its pre-tax profit was RM159.7mil,  up 280.3% or RM117.7mil over the same period. 

“The  improved  earnings  for  the  current  quarter  was  mainly  attributable  to  better  sales mix  contributed  by  the  Malaysian  operations,  and  the  improved  earnings  for  the cumulative  quarter  was  mainly  due  to  higher  revenue as  well  as  better  sales  mix contributed by the Malaysian operations,” it said. 

The company also recorded a RM24.44mil net foreign exchange gain compared with a loss of RM2.1mil in FY14.

In the fourth quarter ended July 31, V.S Industry posted a net profit of RM52.7mil compared with RM36.5mil a year ago. Its revenue, however, fell to RM506.8mil against RM534.4mil achieved previously. 

VS Industry also declared fourth interim single-tier dividend of 1.2 sen per share, and final dividend of 1.2 sen per share subject to shareholders’ approval.

Together with the previous first, second and third interim (adjusted) dividends of 0.6 sen, 0.6 sen and 1.2 sen respectively, and assuming shareholders’ approval of the final dividend, the total dividend per share in respect of FY15 amounts to 4.8 sen compared with 2.34 sen a year ago. 

The dividend payout of RM53.9mil represents 40.6% of FY2015 net profit.