Steady orders, expansion to propel VS Industry


VS Industry said it remains broadly upbeat on its outlook for FY25.

PETALING JAYA: VS Industry Bhd will focus on sustaining business growth in its current financial year ending July 31, 2025 (FY25), underpinned by the expectation of steady customer orders, new product launches and potential clients, as well as its expansion into the Philippines.

Executive chairman Datuk Beh Kim Ling said the integrated electronics manufacturing services provider is optimistic of commencing its operations in the Philippines this year, having secured orders from a key customer in August 2024.

The group will manufacture selected consumer electronics products on a box-build assembly basis; that is, the provision of end-to-end processes from production to assembly, testing, packaging, labelling and logistics arrangement.

“We have incorporated a wholly-owned subsidiary, VS Industry Philippines Inc (VSIP), to seize the opportunities and further strengthen our presence in South-East Asia.

“This reflects our commitment to diversification and growth. We are confident that it will contribute positively to the group’s future performance,” he said in the company’s annual report.

According to VS Industry, the new customer it had secured in August is an existing customer of the group in Malaysia.

“However, the identity and further information on the customer shall remain private and confidential as VSIP has entered into a non-disclosure agreement with the customer,” VS Industry said.

TRANSFORMATIVE IMPACT OF A UK EDUCATION

In the first quarter of FY25 (ended Oct 31, 2024), VS Industry posted a net profit of RM30.6mil, down from RM48.98mil a year ago. Earnings per share slid to 0.79 sen from 1.27 sen previously.

Revenue was slightly lower at RM1.11bil compared to RM1.14bil in the previous corresponding quarter.

Despite the decline, VS Industry said it remains broadly upbeat on its outlook for FY25, supported by the strategic plans in place.

“The group expects sales orders from key customers to sustain on the back of improved consumer sentiments and new model launches.

“At the same time, VS Industry remains focused on enhancing our value chain enhancement initiatives.

“We have successfully developed several processes in-house, which have strengthened our vertical integration capabilities.”

For metal stamping, tools and die design and fabrication, machining as well as anodising and surface finishing of aluminium products, VS Industry said specialist company HTPW, which it acquired last year, saw enhanced sustainability standards and manufacturing capabilities.

It said production yield has gradually improved, following support from the group.

On its Indonesian business, VS Industry said it anticipates the performance in FY25 to be commendable, following an increase in orders from customers.

The company said it expects the healthy momentum to continue, with ongoing discussions and a high likelihood of securing a new client, which would further diversify its customer base.

However, VS Industry noted moderating factors such as macroeconomic uncertainties and foreign-exchange impact arising from a stronger ringgit.

The upcoming increase in minimum wage from RM1,500 to RM1,700 will also add pressure to the business environment.

To manage this, VS Industry has engaged its customers to ensure a smooth transition through established cost pass-through mechanisms.

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