VS Industry confident of overcoming challenges

KUALA LUMPUR: VS Industry Bhd (VS) is confident it will overcome challenges in the second half of the current financial year (2H19) through securing new orders from existing, as well as, potential customers, said managing director Datuk Gan Sem Yam.

“With our solid track record of successful on-time delivery of quality products to our customers’ satisfaction, we are confident we will overcome the challenges,” he said in a statement, adding that it would just be a short-term pain for the electronic and electrical products manufacturer.

Fluctuations in orders does happen in the industry due to various reasons such as a function of market demand, product lifecycle or change in market strategy, Gan said in clarifying an anticipated slowdown in orders from a key customer in 2H19.

On prospects, he said the on-going trade war between the United States (US) and China had, in fact, opened up a lot of opportunities for VS and the company had received many enquiries from US multinational companies that are looking to shift or diversify their manufacturing base to Southeast Asia.

“We are in an excellent position to seize these opportunities. Timing is very opportune as we have two additional facilities with a combined production floor space of 300,000 sq ft ready to take on new business,” he explained.

Gan also said the company’s fundamentals remained strong with a solid balance sheet that included a healthy net gearing of only 0.2 times and net assets per share of RM0.84, as at Oct 31, 2018, to support its operations.

On the corporate front, he said VS remained committed to its dividend policy of distributing at least 40 per cent net profit, paid on a quarterly basis. — Bernama