Latest news with #VSIndustryBhd
New Straits Times
03-07-2025
- Business
- New Straits Times
Tech recovery clouded by weak US dollar
KUALA LUMPUR: The weakening of the US dollar may impede the earnings recovery of the technology sector in the second half of 2025, CIMB Securities said. However, the impact is likely to be minimal for electronics manufacturing services players such as VS Industry Bhd and SKP Resources Bhd, given their ability to pass through foreign exchange fluctuations to customers, albeit with a typical lag of three to six months. "Despite currency headwinds, we expect low single-digit sector sales growth in the upcoming second-quarter results, underpinned by stronger contributions from the Automated Test Equipment segment, led by ViTrox Corp Bhd. "ViTrox has guided for seven per cent to 15 per cent sales growth in the second quarter, supported by a healthy 1.3 times book-to-bill ratio and robust order momentum," it said. CIMB Securities said the outsourced semiconductor assembly and test segment is likely to see moderate sales growth, driven by stable domestic demand in China and consistent orders from the general-purpose server market. "This is broadly in line with leading global semiconductor companies' average sales growth forecast of 3.8 per cent quarter-on-quarter. "Leading analogue semiconductor players such as Texas Instruments and STMicroelectronics are also signalling recovery, with average sales growth guidance of around seven per cent for the second quarter," it added. According to Counterpoint Research, iPhone recorded a 15 per cent year-on-year increase in global sales for April and May, largely fuelled by strong demand in major markets like the United States and China. CIMB Securities said sales growth is also being supported by markets such as India and Japan, viewing this as a short-term benefit for Malaysian radio-frequency (RF) vendors. "While this could reflect potential front-loaded purchases from consumers ahead of expected price hikes due to the implementation of the US' reciprocal tariffs, we see this as a short-term positive for Malaysian RF vendors. "This demand boost could also support near-term inventory replenishment, especially in anticipation of a new generation of smartphones set to launch in the third quarter," it said. CIMB Securities retained its "neutral" call on the technology sector, citing subdued demand outside of artificial intelligence (AI), currency headwinds, and ongoing cost pressures as factors weighing on the recovery outlook. "Although demand for AI-driven logic and memory chips remains strong, broader sector growth is uneven," it said.
The Star
11-06-2025
- 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.
