KUALA LUMPUR: Despite a cautious industry outlook in the coming months, VS Industry is expecting a satisfactory result for the remaining quarters of its financial year.
In the second quarter ended Jan 31, 2025, the electronics manufacturing services provider posted a net profit of RM15.38mil, down from RM16mil in the year-ago quarter, due to a higher tax expense.
The group's earnings per share slid to 0.4 sen from 0.42 sen previously. Revenue, however, was RM908.8mil, an increase from RM884.06mil in 2QFY24.
Over the cumulative six months period (1HFY25), VS Industry's net profit was RM45.98mil, a steep decline from RM64.99mil in 1HFY24 while revenue dropped to RM2.019bil from RM2.024bil.
In a filing with Bursa Malaysia, the group said the weaker performance was owing to lower sales orders from existing customers and higher operating expenses coupled with an unfavourable foreign exchange rate.
A second interim dividend of 0.4 sen was declared, to be paid on April 28, 2025, to shareholders whose hames appear on the company's record of depositors on April 14, 2025.
VS Industry said in comments to its results that the customer order flow in Malaysia remains "broadly healthy".
The group said it has made more prudent order placements in light of the prevailing market uncertainties, potential supply chain disruptions and subdued consumer sentiment.
"On a brighter note, we are positive with the anticipated new model launches by certain customers, particularly towards the last quarter of our fiscal
year," it said.
In the Philippines, the group is scheduling a production trial run and is expecting mass production to take place in the next two months.
VS Industry reiterated a positive long-term outlook, underpinned by a strong customer base, enhanced vertical integration capabilities, solid financial standing, and prudent management practices.
