VS (6963) V.S INDUSTRY BHD posts highest quarterly profit of RM66.67m
KUALA LUMPUR: Electronics manufacturing services (EMS) VS Industry recorded its highest quarterly profit of RM66.67mil due to a favourable product sales mix in Malaysia underpinned by its strategy of having a more diversified clientele.
It reported on Thursday its net profit in the first quarter ended Oct 31,2020 rose by 38.7% from RM48.07mil a year ago. Earnings per share were 3.56 sen compared with 2.62 sen. It declared a dividend of 1.2 sen a share compared with one sen a year ago.
However, its revenue dipped by 4.6% to RM987.10mil from RM1.03bil a year ago due to lower turnover contribution from China operations.
VS Industry said domestic sales accounted for 88.7% or RM873.4mil of its revenue. Its Indonesia and China operations contributed 7% and 4.3% respectively.
Its managing director, Datuk S.Y. Gan said the record earnings were amid the backdrop of a taxing operating environment as a result of the Covid-19 pandemic.
“The group has been and will continue to be busy fulfilling customers’ orders in the coming quarters. This includes several new product models that are in the pipeline for launching in 2021 by our customers, ” he said.
Gan added these factors and also two new customers which it secured in August and October, he expected its existing capacity to be filled up by 2021.
“Therefore, we have acquired land and buildings that will enhance our built-up area in Malaysia by 25%, increasing the total floor space to more than two million square feet. This will enable us to cater to the orders from our existing and new customers, ” he said.