PETALING JAYA: VS Industry Bhd
is only expected to see better earnings visibility towards the end of the year as the scaling back of orders by its customers continues to drag its financial results.
Maybank Investment Bank Bhd (Maybank IB) said VS Industry had highlighted soft orders from customers X and Y in the financial year 2024 due to subdued consumer demand and inventory rationalisation for Customer X.
However, Maybank IB said through the introduction of three new capabilities for internal and external sales, the group has strengthened its value chain with Customer X.
VS Industry has invested RM30mil in upgrading the recently acquired HT Press Work Sdn Bhd’s machinery, expecting contributions from the second half of 2024 onwards.
Maybank IB has assigned a “sell” call on the firm from a previous “hold” with a target price of 71 sen.
Meanwhile, CGS-CIMB Research has maintained a “hold” call on VS Industry with a target price of 82 sen.
