V.S Industry posts RM41m in net profit for 4Q21

by ANIS HAZIM / pic credit: vs-i.com

V.S Industry Bhd posted a net profit of RM41.48 million for the fourth quarter ended July 31, 2021 (4Q21) against RM54.73 million in the same quarter last year due to a one-off (non-cash) impairment on the investment.

While its revenue for the current quarter increased 6.6% to RM941.1 million compared to RM882.61 million of the previous year corresponding quarter.

The company in a filing to Bursa Malaysia said its earnings were also affected due to increase in cost, partially offset by profit from Indonesia and lower loss incurred by the operation in China.

Meanwhile, the significant rise in earnings for the cumulative quarters was mainly attributable to higher sales orders from existing key customers, favourable product sales mix in Malaysia, turnaround in performance from Indonesia as well as much narrower losses incurred in China

The group’s earnings per share fell to 1.09 sen compared to 1.46 sen in the same quarter last year.

Its Malaysia segment posted an 8.5% increase in revenue on higher sales orders from key customers.

“The increase is notwithstanding the fact that sales were affected by the implementation of full movement control order (FMCO) coupled with EMCO during the current quarter,” V.S Industry said.

Meanwhile, its Indonesia segment recorded a profit before tax of RM2.9 million due to higher sales orders from a key customer in consumer electronics following an increase in work from home arrangement worldwide.

However, its China segment registered lower revenue for the current quarter as operations remained under-utilised in the absence of large orders, given the highly challenging operating landscape in China.

Nevertheless, the group said its demand outlook for orders across key customers in Malaysia remains healthy and robust.

“There are several new product models coming into production progressively over the coming quarters. We have also recently commenced box-build production for a new customer.

“Meanwhile, we have already completed the vaccination exercise for our employees at our own industry vaccination centre (PPVIN) and resumed production to full capacity,” it said.

In addition, the group’s new facilities in Senai Airport City in Johor are also on track for completion in the near future.