PETALING JAYA: VS Industry Bhd
’s (VSI) first-half earnings lagged expectations but the second half is expected to be stronger, driven by the maiden contribution from its new Philippines operations by the end of this year.
CGS International Research (CGSI Research) made no changes to its forecasts for the provider of integrated electronics manufacturing services.
The research house maintained its view that VSI is on track to deliver strong earnings per share growth of 41% in 2026 and a further 19% in 2027.
This will be mainly driven by contribution from its new Philippines operations, catering for an unnamed customer, as VSI had successfully secured orders to assemble several new products, with production set to begin in April or May.
In its current forecast, CGSI Research imputed revenue of RM250mil for the company’s current financial year, followed by RM1bil in 2026 and RM1.25bil in 2027, with contributions from the Philippines operations.
The research house said it also believes VSI’s vertical-integration initiatives have been progressing well.
CGSI Research upgraded VSI from “hold” to “add” with an unchanged RM1.03 target price.
