VS Industry feels impact of lower sales orders, higher expenses and unfavourable forex

The Sun

12-06-2025

PETALING JAYA: Electronics manufacturing services provider VS. Industry Bhd posted revenue of RM909.4 million for the third quarter ended April 30, 2025 (Q3'25) versus RM1.01 billion in the corresponding period a year ago.
Parallel with the top-line performance, Q3'25 net profit stood at RM23.4 million, compared to RM54.4 million in the previous corresponding quarter.
The company's performance was affected by lower sales orders from existing customers, higher operating expenses and unfavourable foreign exchange rates.
On a quarter-on-quarter (q-o-q) basis, revenue was marginally higher at RM909.4 million compared to RM908.8 million. Nevertheless, Q3'25 net profit jumped 54.5% q-o-q to RM23.8 million from RM15.4 million, driven by lower operating expenses.
Meanwhile, the group reported revenue of RM2.93 billion for nine months of FY25 (9M25), compared to RM3.03 billion in the prior year. Net profit for 9M25 was RM69.7 million, compared to RM119.4 million last year.
This was attributed mainly to the factors cited above. Net foreign exchange loss in 9M25 stood at RM1.3 million, compared to a net gain of RM28.6 million in the corresponding period last year.
Managing director Datuk SY Gan said the global business landscape, already weighed down by subdued consumer sentiment, inflationary pressures, and geopolitical tensions, faced further headwinds and volatility following a series of announcements in early April on revised tariff measures imposed on various trading nations, including Malaysia.
'The announcements resulted in specific customers adjusting their orders in response to the newly imposed tariff measures. The overall order flow situation in Malaysia and Singapore in the near term will be contingent upon the prevailing consumer sentiments and the evolving development surrounding tariff measures, primarily upon expiry of the 90-day grace period in early July 2025.
'Despite this, the group remains engaged with our customers on new product development programmes, and continues to pursue opportunities for recovery in the quarters ahead with the anticipated new model launches by some of our customers.'
Meanwhile, Gan said, the group has commenced mass production in the Philippines and the utilisation rate will gradually increase towards the end of the year.
'Despite the external headwinds, we remain positive on the Group's long-term outlook, supported by a resilient customer base, strong vertical integration capabilities, sound financial fundamentals, and prudent cost and risk management,' he added.
The board has declared a share dividend by distributing treasury shares on a one-for-every-125 existing ordinary shares basis.