VS (6963) - V.S. Industry 2Q net profit surges 386.9% on higher sales volume, better sales mix
By Charlotte Chong / theedgemarkets.com | March 26, 2015 : 11:47 PM MYT
KUALA LUMPUR (Mar 26): V.S. Industry Bhd ’s net profit jumped 386.9% to RM18.3 million or 9.07 sen a share for its second financial quarter ended Jan 31, 2015 (2QFY15) from RM3.76 million or 2.07 sen a share a year ago, lifted by higher sales volume of key customers and better sales mix from its Malaysian operations.
V.S. Industry's (fundamental: 1.1, valuation: 2.4) revenue increased 26.7% to RM465.38 million from RM367.37 million in 2QFY14.
The Malaysian operations was the group's largest revenue contributor with RM317.5 million in sales, which grew 44.3% year-on-year compared with RM220.0 million in 2QFY14. Its China and Indonesia plants contributed the remaining RM128 million and RM19.2 million respectively.
The electronic manufacturing services (EMS) player also declared a second interim dividend of 3 sen per share for the financial year ending July 31, 2015 (FY15), payable on May 15.
Together with the first interim dividend of 3 sen per share, V.S. Industry has declared a total of 6 sen for FY15. The cumulative dividend payout of RM12.4 million represents 23.2% of net profit for the six months period (1HFY15).
The improved quarterly earnings pulled up its net profit for 1HFY15 to RM53.52 million, up 301.8% from RM13.32 million a year ago. Revenue also grew 25.5% to RM1.01 billion from RM804.63 million in 1HFY14.
"We have been an export-focused EMS player serving international brands for more than 30 years, and intend to continue expanding our clientele," said V.S. Industry managing director Datuk Gan Sem Yam in a statement today.
"Specifically, we are eyeing consumer electronics brands from developed countries, where we can not only support their manufacturing requirements, but also be involved from the very beginning at research and development stage,” he added.
Gan also noted that the group is optimistic of its outlook in the foreseeable future.
“The strengthening US economy thus far bodes well for consumer sentiment, in light of improving new home sales, firming inflation and other positive indicators.
“This positions our key customers favourably, which are in the consumer electronics sector, and correspondingly for V.S. Industry,” he said.
“We are hopeful of continuing our positive performance in the second half of FY15,” he added.
Its counter climbed 1.15% or 5 sen to close at RM4.41 today, with a market capitalisation of RM921.9 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
By Charlotte Chong / theedgemarkets.com | March 26, 2015 : 11:47 PM MYT
KUALA LUMPUR (Mar 26): V.S. Industry Bhd ’s net profit jumped 386.9% to RM18.3 million or 9.07 sen a share for its second financial quarter ended Jan 31, 2015 (2QFY15) from RM3.76 million or 2.07 sen a share a year ago, lifted by higher sales volume of key customers and better sales mix from its Malaysian operations.
V.S. Industry's (fundamental: 1.1, valuation: 2.4) revenue increased 26.7% to RM465.38 million from RM367.37 million in 2QFY14.
The Malaysian operations was the group's largest revenue contributor with RM317.5 million in sales, which grew 44.3% year-on-year compared with RM220.0 million in 2QFY14. Its China and Indonesia plants contributed the remaining RM128 million and RM19.2 million respectively.
The electronic manufacturing services (EMS) player also declared a second interim dividend of 3 sen per share for the financial year ending July 31, 2015 (FY15), payable on May 15.
Together with the first interim dividend of 3 sen per share, V.S. Industry has declared a total of 6 sen for FY15. The cumulative dividend payout of RM12.4 million represents 23.2% of net profit for the six months period (1HFY15).
The improved quarterly earnings pulled up its net profit for 1HFY15 to RM53.52 million, up 301.8% from RM13.32 million a year ago. Revenue also grew 25.5% to RM1.01 billion from RM804.63 million in 1HFY14.
"We have been an export-focused EMS player serving international brands for more than 30 years, and intend to continue expanding our clientele," said V.S. Industry managing director Datuk Gan Sem Yam in a statement today.
"Specifically, we are eyeing consumer electronics brands from developed countries, where we can not only support their manufacturing requirements, but also be involved from the very beginning at research and development stage,” he added.
Gan also noted that the group is optimistic of its outlook in the foreseeable future.
“The strengthening US economy thus far bodes well for consumer sentiment, in light of improving new home sales, firming inflation and other positive indicators.
“This positions our key customers favourably, which are in the consumer electronics sector, and correspondingly for V.S. Industry,” he said.
“We are hopeful of continuing our positive performance in the second half of FY15,” he added.
Its counter climbed 1.15% or 5 sen to close at RM4.41 today, with a market capitalisation of RM921.9 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
