VS Industry forecast for steep earnings slide

KUALA LUMPUR: Despite receiving approval for its manufacturing facilities to operate at up to 50% capacity, VS Industry Bhd is expected to face a steep decline in its earnings for the current financial year.

"Given the severity of the Covid-19 pandemic and the negative impact from the extended MCO, we cut our FY20E earnings forecasts by 22%, expecting a steep 58% decline in VS Industry’s FY20 core net profit," said Affin Hwang Capital research, which reiterated its sell call on the stock.