VS Industry on track to beat projections for FY21

KUALA LUMPUR: VS Industry Bhd is likely to exceed expectations for its current financial year despite some negative impact from the current movement control order, says PublicInvest Research.

On the back of VS Industry's strong 9MFY21 result, the research house said it remains optimistic over further upside from earlier-than-expected line commissioning for its new customers.

"Our target price is raised to RM1.56 (RM1.52 previously) on a 20x multiple to a rolled-forward CY22 EPS," said PublicInvest while reiterating its "outperform" call.

Moving forward, VS Industry's key customer orders remain healthy and robus while its new 413,682 sq ft facility in i-park@Senai Airport City is on track for completion in the next few months to cater for several new product models.

The group's management is optimising its production output while complying with the standard operating procedures amid the current movement lockdown.

VS Industry posted a strong quarterly performance with 3QFY21 net profit of RM73.4mil, which was 15 % higher quarter-on-quarter and more than 100% higher year-on-year.

Cumulatively, 9MFY21 net profit of RM203.9mil beat expectations at 90% and 85% of PublicInvest's and consensus full-year estimates respectively.
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