VS Industry 2Q net earnings climb on higher sales orders, declares div of 1.2 sen/share

KUALA LUMPUR: VS Industry Bhd recorded a jump in net earnings to RM63.79mil in the second quarter ended Jan 31, 2021, as compared to RM31.27mil in the previous corresponding quarter amid higher sales orders and a favourable sales mix.

Group revenue for the quarter rose 21.82% year-on-year (y-o-y) to RM999.31mil.

For the quarter, the board of directors declared a second interim dividend of 1.2 sen per share payable on April 30, 2021.

The group said in a filing with Bursa Malaysia that its Malaysia segment posted a 28.2% jump in revenue due to higher sales orders from key customers.

Earnings contribution from a more diversified clientele also led to an overall better product sales mix, it said.

Meanwhile, the Indonesia business posted a pre-tax profit of RM4.73mil in the quarter versus a pre-tax loss of RM1.54mil in the previous corresponding quarter, owing to a higher sales order from a key customer in consumer electronics.

The group's China segment recorded lower revenue due to an absence of large orders given the highly challenging operating landscape.

Moving forward, VS Industry said ts customers' orders are sustaining at healthy levels while several new product models will come into production over the coming quarters. Based on existing order flow, the Group’s present capacity is expected to be filled up by the end of 2021.

It added that its new facilities in i-Park @ Senai Airport City are on track to be completed within the next few months.

Upon completion, the facilities will house production of certain new models as well as serve as the group's new headquarters.

"All in all, we are cognizant of the prevailing challenges. Nonetheless, against the backdrop of nascent economic recovery supported by the planned mass vaccination exercise, coupled with prudent planning, careful execution by the management along with the encouraging order flow from our customers, the Board opines that the financial performance of the Group for the remaining quarters will be satisfactory.” said Datuk S.Y. Gan in a statement..
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VS Industry , semiconductor


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