VS Industry sees sales pickup as consumer sentiment improves


KUALA LUMPUR: The outlook on VS Industry Bhd is gaining promise following a healthy pickup in sales orders from key customers, said Hong Leong Investment Bank (HLIB) Research.

In a results update, the research firm said this was owing to improved consumer sentiment and normalisation of customers' inventory levels.

"Additionally, things are also looking up with launches of several new models by certain customers which will keep VSI occupied in the mid-term.

"VSI is poised to strengthen its vertical integration capabilities with the recent successful development of several new processes in-house," it said.

HLIB, which upgraded its recommendation to "hold" from "sell", raised its target price to RM1.04 from 71 sen previously as it rolled forward its valuation year to FY25.

"Despite the macro uncertainties we opine that things are gradually looking better for VSI with the recovery in orders from key

customers," it said.

VS Industry announced in a filing with the stock exchange yesterday it registered revenue of RM1bil in 3QFY24 which was 1% improved year-on-year (y-o-y). This translated into core profit after tax, amortisation and minority interest (Patami) of RM46.4mil, a 67% increase over the same quarter in 2023.

For the nine-month period, the company's core Patami was 37% lower y-o-y at RM89.2mil.

The company declared a third interim dividend of 0.4 sen a share, going ex on July 9, 2024, which brought year-to-date dividend payout to one sen per share.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

VS Industry , EMS , semiconductor , HLIB

   

Next In Business News

CLMT cautiously optimistic of its 2024 performance
AME Elite and AME REIT announce RM119.5mil industrial properties transaction in Iskandar Malaysia
Malaysian semiconductor exports to reach RM1.2 trillion by 2030 - MSIA
Ringgit closes slightly higher against the greenback
BOS Wealth Management partners with OCBC Malaysia to expand market reach
Korea’s OCI said to weigh RM1.5bil IPO for Malaysia unit
BAT reports lower 2Q24 earnings
AAX carries carries 880,265 passengers in 2Q24, surges 42% YoY
Moody's Ratings: Malaysia to benefit from data centre demand spillover
MN Holdings bags RM136mil substation engineering contract

Others Also Read