Latest news with #RM1.01bil
The Star
2 days ago
- Business
- The Star
Expansion, new orders to lift VSI's earnings despite trade uncertainty
CIMB Research cut its earnings per share forecasts by between 10% and 20% for FY25 to FY27. PETALING JAYA: Analysts remain divided on the outlook for electrical and electronics manufacturing company VS Industry Bhd (VSI) following the release of its results for the third quarter of its financial year ending July 31 (3Q25), which came in below expectations. VSI posted net profit of RM23.77mil and revenue of RM909.41mil for the quarter. This was down from RM54.42mil and RM1.01bil in the same quarter a year ago. The results came in below CIMB Research's expectations, accounting for 49% of its full-year estimate and 52% of consensus. The year-to-date earnings declined 42% year-on-year and was said to be mainly due to weaker demand, higher labour costs in Malaysia, and start-up expenses from its new operations in the Philippines. Given the ongoing demand uncertainty amid subdued consumer sentiment and possible tariffs, CIMB Research cut its earnings per share forecasts by between 10% and 20% for FY25 to FY27. 'Near-term order flows from Malaysia and Singapore will remain dependent on evolving consumer sentiment and clarity on US tariffs following the end of the 90-day grace period in early July,' CIMB Research said. Following its earnings revision, CIMB Research maintained a 'hold' call on VSI with a lower target price of 79 sen, adding that the discount appropriately captures the heightened earnings risks. Hong Leong Investment Bank Research (HLIB Research) also flagged concerns about the group's earnings visibility. HLIB Research reported that VSI's core profit after tax and minority interest of RM69.6mil for the nine months of its current financial year (9M25) was 26.3% lower, meeting only half of its full-year forecast. 'While we anticipate some frontloading activity from US-exposed customers in 4Q25, we see downside risk to management's FY26 guidance given potential inventory adjustments and an uncertain order environment after frontloading,' HLIB Research said. Despite this, the research house pointed to a potential earnings boost from the ramp-up of the group's Philippines operations and a newly secured contract from a big customer. HLIB Research maintained its 'hold' rating on VSI with a lower target price of 72 sen, from 86 sen.
The Star
3 days ago
- Business
- The Star
V S Industry 3Q showing deteriorates
The company's third-quarter net profit fell more than half to RM23.8mil. PETALING JAYA: V S Industry Bhd (VSI) remains positive on its long-term outlook despite external headwinds, supported by a resilient customer base, strong vertical integration capabilities, solid financial fundamentals, and prudent cost and risk management. In the third quarter ended April 30, the electronics manufacturing services or EMS provider's net profit fell more than half to RM23.8mil, or 0.62 sen per share, compared with RM54.4mil, or 1.43 sen, in the same quarter a year ago. Revenue for the quarter fell to RM909.4mil against RM1.01bil previously. VSI said its top and bottom-line performance was impacted by lower sales orders and higher operating expenses. In the nine months to April 30, VSI posted a net profit of RM69.7mil, down 41.6% from RM119.4mil, while revenue fell 3.5% to RM2.93bil versus RM3.03bil last year.
The Star
3 days ago
- Business
- The Star
V.S. Industry quarterly earnings fall 56% to RM23.8mil
KUALA LUMPUR: V.S. Industry Bhd (VSI) remains positive on its long-term outlook despite external headwinds, supported by a resilient customer base, strong vertical integration capabilities, solid financial fundamentals, and prudent cost and risk management. Managing director Datuk SY Gan said the global business landscape—already burdened by subdued consumer sentiment, inflationary pressures, and geopolitical tensions—faced renewed headwinds and volatility following a series of revised tariff announcements in early April 2025, affecting various trading nations, including Malaysia. He said the announcements resulted in certain 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, especially 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,' Gan said. In the third quarter ended April 30, the electronics manufacturing services (EMS) provider's net profit fell more than half to RM23.8mil, or 0.62 sen per share, compared with RM54.4mil, or 1.43 sen, in the same quarter a year ago. Revenue for the quarter fell to RM909.4mil against RM1.01bil previously. VSI said its top- and bottom-line performance were impacted by lower sales orders from existing customers, higher operating expenses, and unfavourable foreign exchange rates. In the nine months to April 30 (9M25), VSI posted a net profit of RM69.7mil, down 41.6% from RM119.4mil, while revenue fell 3.5% to RM2.93bil versus RM3.03bil last year. VSI said its net foreign exchange loss for the nine-month period ended April 30, stood at RM1.3mil, compared to a net gain of RM28.6mil in the same period last year.
The Star
30-05-2025
- Business
- The Star
Mah Sing starts FY25 strong with 10% earnings growth
PETALING JAYA: Mah Sing Group Bhd kicked off the financial year 2025 (FY25) with a 10% on-year rise in earnings to RM66.04mil or earnings per share (EPS) of 2.58 sen for the first quarter ended March 31, 2025 (1Q25). Revenue for the period rose 16% to RM649.69mil driven by progressive revenue recognition from ongoing construction projects. In a filing with Bursa Malaysia, the property developer noted its property development segment posted higher revenue and operating profits of RM521mil and RM103.4mil respectively in the quarter. 'The group achieved RM1.01bil property sales for the five months of 2025,' Mah Sing stated. Its manufacturing segment reported a revenue of RM113mil and an operating loss of RM1.3mil in 1Q25. This was in comparison to RM98.5mil revenue and operating profit of RM0.7mil recorded in the same quarter in the previous year. Meanwhile, Mah Sing's revenue from its investment holding and other segments amounted to RM99.29mil in the period comprising mainly interest income from the deposit of funds, revenue from trading of building materials and hotel operation. Looking ahead, Mah Sing said the new property sales of RM1.01bil in the first five months shows the group is on track to meet its full-year sales target of a minimum RM2.65bil in FY25. The groups' latest acquisition of its first new land in Sentul, Kuala Lumpur, which has a gross development value of RM283mil and is expected to fuel Mah Sing future growth. 'The group will continue to identify strategic land opportunities for potential developments with efficient turnaround time,' it added. Separately Mah Sing stated it is now welcoming new investor interest for its 17.55-acre freehold land in Southville City, Dengkil, following the expiry of the previous collaboration agreement with Bridge Data Centres Malaysia V Sdn Bhd (BDC). This came about after Mah Sing was unable to get a clear commitment from BDC to proceed with the execution of a definitive agreement. On May 30, 2024, the two parties had signed a collaboration agreement for the development of a data centre there. The site — backed by ready infrastructure for up to 100MW power capacity — remains a strategic location for data centre development. Mah Sing added it is open to exploring joint ventures, build-and-lease (BTL) models or outright land sale. Collaboration for a second data centre at a 35.7-acre site for a larger 200MW data centre remains under discussion, it said. Mah Sing also remains open to engagement with other potential data centre operators.
