-->

Type something and hit enter

Pages

Singapore Investment


On

KUALA LUMPUR: Public Investment Bank Research is optimistic over VS Industry Bhd's long-term prospects as the group makes headway with prospective customers and the worst of the impact from the Covid-19 lockdowns appear to have passed.

VS Industry's share price has risen 170% from its March low, and ahead of news that the group has secured another US-based customers after months of negotiation.

The group's management has said the new customer could be as big as the most recent one secured in March 2019.

"We lift FY22 earnings estimates by 16.9% to account for this new contract win. FY21 earnings estimates are also raised by 14.1% to account for assumption changes in current product mix and operating margins," said PublicInvest. It raised its target price on the stock to RM1.57.

The research house maintained its "neutral" outlook on vs Industry given the stock's recent run-up in share price to RM1.62 as at Tuesday's close.

Nevertheless, the research house acknowledges that there could be further trading interest as the group is in discussions with a few other potential customers.

https://www.thestar.com.my/business/business-news/2020/08/19/publicinvest-raises-earnings-forecasts-on-vs-industry
Back to Top