KUALA LUMPUR: VS Industry Bhd expects to see an improved performance over the remaining quarters of the year as it makes progress in ongoing discussions with prospective customers.
The electronics manufacturing services (EMS) provider said it is also seeing a resurgence of orders from key customers, underpinned by normalization of its inventory levels and improving sentiments, while the launch of new models by certain customers have also served to sustain market interest.
“During the period of softer orders, the group has been busy strengthening our market positioning and value proposition to customers by further enhancing in-house capabilities.
“We have now successfully developed several new processes that are ready for mass production in the near future,” it said in comments accompanying a filing with Bursa Malaysia.
In the second quarter ended Jan 31, 2024, VS Industry registered a net profit of RM16mil, which was slightly over half the net profit of RM30.36mil in the year-ago quarter.
Consequently, its earnings per share fell to 0.42 sen from 0.79 sen previously.
The group reported revenue of RM895.02mil, down from RM1.15bil in 2QFY23.
For the six month period, VS Industry registered a net profit of RM64.99mil compared to RM91.07mil in 1HFY23, while revenue dropped to RM2.05bil from RM2.44bil in the previous period.
“The reduced earnings for the current quarter and cumulative quarters were due to lower orders from key customers, which in turn affected the overall utilization rate of production capacity,” it said.
The board of directors declared a second interim dividend of 0.3 sen per share to be paid on April 30, 2024, the shareholders whose names appear on the company’s record of depositors on April 16, 2024.
