by NUR HAZIQAH A MALEK / pic credit: vs-i.com

INDUSTRIAL mold manufacturer VS Industry Bhd has recorded a net profit of RM73.38 million for its third quarter ended April 30, 2021 (3Q21), against a net loss of RM19.53 million in the same period last year.

Revenue also has more than doubled to RM1.07 billion from RM505.66 million last year, attributable to higher sales orders from existing key customers and favourable product sales mix in Malaysia, according to an exchange filing yesterday.

However, the company noted it was significantly affected by the Movement Control Order (MCO) last year.

For nine months to date (9M21), the group’s net profit grew 230.17% year-on-year to RM203.85 million from RM61.74 million for the same period last year.

9M21 revenue increased to RM3.06 billion compared to RM2.36 billion previously.

The group noted that the current challenging operating environment in the country due to the pandemic is expected to prevail over the next 12 months, while global trade activities are projected to pick up after mass vaccination worldwide.

“In Malaysia, however, the situation remained uncertain with rising Covid-19 cases that resulted in the government announcing a full MCO effective June 1, 2021.

“This may likely have some impact on the group’s performance in 4Q21,” it said.

The group said orders across key customers remained healthy and robust with several new product models coming into production progressively over the coming quarters.

“Management is optimising the production output while complying with the standard operating procedures stipulated by the authorities,” it said.

The group noted that its new facilities in i-Park@Senai Airport City, Johor are on track for completion within a few months.

“Production of certain new models would take place at the new facilities thereafter, along with the relocation of VS Industry’s headquarter to the new buildings,” it said.