VS Industry posts RM54.1m net profit in Q4

KUALA LUMPUR: Leading electronics manufacturing services provider VS Industry Bhd recorded a lower net profit of RM54.1 million in the fourth quarter ended July 31 compared with RM56.3 million in the same period last year.

Its revenue declined 15 per cent year-on-year to RM882.6 million due to lower sales orders from a key customer.

The slight drop in net profit is largely attributed to losses incurred from the operations in China as the company carried out its asset-light and lower-cost strategy.

“We are pleased to deliver a strong recovery in our fourth quarter performance against the backdrop of a difficult operating environment stemming from the Covid-19 pandemic.

“Orders from customers are showing a healthy rebound. In preparation for future expansion, we plan to increase our capacity by acquiring new plants,” said managing director Datuk S.Y. Gan in a statement yesterday.

For the full-year, VS Industry registered a revenue of RM3.24 billion, a decline of 18.5 per cent year-on-year. Net profit slipped 29.9 per cent to RM115.9 million.

The decrease was attributed to the temporary closure of factories following the Movement Control Order, in addition to lower orders from a key customer.

The board has declared an interim dividend of 0.8 sen per share for the quarter under review. It has also proposed a final dividend of another 0.8 sen.

Total dividend per share for the current financial year amounted to 2.6 sen, representing a 41.5 per cent payout based on the financial year 2020 earnings per share of 6.27 sen. The group has a dividend policy of 40 per cent payout of net profit.