Leading Electronics Manufacturing Services provider in Malaysia, V.S. Industry Berhad posted its highest-ever profit in its history, surpassing the previous record of RM165.4 million achieved in 2019.
Net profit for this year soared 2.1 folds to RM245.3 million versus RM116.5 million recorded last year. This was parallel with the top-line improvement while the larger-than-proportionate rise in profitability was due to favourable product sales mix in Malaysia stemming from a more diversified clientele, turnaround in performance from Indonesia as well as much narrower losses incurred in China.
Revenue rose 23.4% year-on-year to RM4 billion as compared to RM3.24 billion in the previous year. The double-digit growth was primarily attributed to higher sales orders received from its key customers in Malaysia and Indonesia. Sales from Malaysia and Indonesia increased 28.2% and 47.5% to RM3.48 billion and RM350.0 million respectively.
As for profits, local operations recorded RM323.3 million for the financial year under review, an increase of 72.8% whilst Indonesia posted RM11.0 million from a loss of RM11.4 million a year ago. Meanwhile, losses in China narrowed significantly with lower expenses incurred following a series of streamlining initiatives.
Managing Director of VS, Datuk S.Y.Gan was quick to point that the FY21 net profit has exceeded the RM240 million-mark for the first time and surpassed the previous record of RM165.4 million achieved in FY19.
For demand outlook, VS’s orders across key customers in Malaysia continues is to be healthy as there are several new product models coming into production over the coming quarters. The company hasrecently commenced box-build production for a new customer from the US. In Indonesia, the good performance is expected to sustain based on current order visibility. For China, there are some preliminary discussions with prospective customers, but the immediate focus remains on cost management given the taxing environment there.
VS’ balance sheet continued to be healthy with negligible net gearing as at end-July 2021. Gross cash holdings stood at RM402.4 million and backed by net assets of RM0.54 per share.
