VS Industry’s quarters ahead to grow from strength to strength

KUCHING: VS Industry Bhd’s (VS Industry) first nine months of financial year 2017 (9MFY17) result has met expectations, and analysts are projecting “the quarters ahead to grow from strength to strength”.

In a filing on Bursa Malaysia, VS Industry revealed that for the 9M period ended April 30, 2017, profit before tax stood at RM175.9 million, up by 32.2 per cent or RM42.8 million over the same period.

VS Industry’s third quarter of FY17 (3QFY17) core net profit of RM51million came within AmInvestment Bank Bhd’s (AmInvestment Bank) expectations and consensus.

This brought 9MFY17 core net profit to RM116 million, accounting for 69 per cent and 71 per cent of AmInvestment Bank and consensus core profit estimates, respectively.

A dividend of 1.5 sen brought year to date (YTD) dividend to 3.9 sen, which was in line with the research firm’s expectation.

VS Industry’s 9MFY7/17 core net profit of RM122 million also met the research arm of Maybank Investment Bank Bhd’s (Maybank IB Research) expectation at 71 per cent of its full-year forecast but beat streets’ estimate at 75 per cent.

The group’s 9MFY17 dividend per share (DPS) of 3.9sen represented 40 per cent dividend payout ratio (DPR) which was within Maybank IB Research’s forecast.

According to Maybank IB Research, the commencement of mass-production in the group’s two new box-build manufacturing lines has set a new standard for VS Industry’s Malaysia operation in terms of revenue and earnings.

The research arm expected this estimated RM600 million plus quarterly revenue performance to sustain with upside, onpotential of additional box-build lines to support the group’s customer’s demand growth globally, be it home cleaning devicesor coffee brewers.

Maybank IB Research’s current forecasts implied a 26 per cent three-year earnings CAGR with upside potential coming from higher utilisation of its box-build production line expansion over the next three quarters coupled with internal production automation brought over from its Zhuhai, China plant.