VS Industry Q4 net profit up by over three-fold

PETALING JAYA: VS Industry Bhd reported a net profit which more than tripled to RM36.8 mil in the fourth quarter ended July 31, compared with RM10.9 mil in the same period last year, helped by higher sales orders from existing key customers.

The integrated electronics manufacturing services provider reported a 77.4% rise in revenue to RM983.4 mil from RM554.2 mil a year ago. Earnings per share (EPS) for the period rose to 3.08 sen compared with 0.94 sen previously.

VS Industry has declared a fourth interim single-tier dividend of one sen per ordinary share amounting to RM12.1mil, which will be paid on Oct 27 to shareholders whose names appear on the company’s record of depositors on Oct 16.

Its total dividend per share for the financial year ended July 31 is 5.9 sen.

VS Industry said the improved earnings for the current quarter and cumulative quarters was mainly attributable to higher sales orders from existing key customers, coupled with net foreign-exchange gains.

For the full financial year ended July 31 (FY17), VS Industry’s net profit rose to RM156.3 mil, or an EPS of 13.23 sen, from RM117.9 mil, or an EPS of 10.15 sen.

It posted a record revenue of RM3.28 bil, up 50.8% from RM2.17 bil last year.

VS Industry said that it had received substantially higher boxbuild orders from key customers, particularly during the second half of FY17.

“The trend of rising orders is expected to sustain going into the next financial year. To cope with the potential new orders from existing and new customers, the group has added more production space by constructing a new factory-cum-warehouse,” it said.

On its operations in China, the group’s Hong Kong-listed subsidiary, VS International Group Ltd, had recently completed a rights issue raising proceeds of HK$105.8 mil, which will be used to expand the operations in China and tap into its growing domestic sales.

“Prospects of the group remain positive, underpinned by the factors mentioned above.

“Nevertheless, the group is also cognizant of the challenges at the macro-environment level, which include fluctuations in the US dollar/ ringgit foreign exchange rate and changes in regulations which may impact operating costs,” VS Industry said.