Tuesday 19 Mar 2024
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KUALA LUMPUR (Dec 18): VS Industry Bhd shares fell as much as 17 sen or 21% to 65 sen today with the broader market and after analysts said they were concerned about the company's earnings growth for the financial year ending July 31, 2019 (FY19).

At 11:45am today, shares of electrical and electronic products manufacturer VS were traded at 69 sen with some 112 million units transacted. VS was Bursa Malaysia's most-active stock. In the broader market, the FBM KLCI fell 9.23 points to 1,632.39.

Maybank Investment Bank Bhd analyst Ivan Yap wrote in a recent note that the research firm had lowered its VS share target price to 82 sen from RM1.95. Yap said Maybank Investment downgraded its VS share recommendation to sell from buy.

"1QFY19 core earnings was below our/consensus expectations due to losses at overseas ops (operations). However, the bigger concern lies in 2HFY19 whereby VS has received a decline in order flow from a key customer in Malaysia. Uncertainties beyond 1HFY19 prompt our FY19-21 cut in net profit forecasts by 42%-58%," he said.

Today, VS shares fell to their lowest so far at 65 sen for a market capitalisation of RM1.18 billion based on the company's issued base of 1.81 billion shares.

VS's market capitalisation at RM1.18 billion today is a RM1.23 billion or 51% drop from the RM2.41 billion market value recorded on Dec 10 this year when the stock closed at RM1.33.

Bursa Malaysia has noted VS's share-trade dynamics. The bourse said in special announcements today and yesterday (Dec 17) that proprietary day trading (PDT) and intraday short selling (IDSS) of VS securities have been suspended as the last done price of the approved securities dropped more than 15 sen or 15% from the reference price.

Today, Bursa said: "The PDT and IDSS activities will only be enabled the following trading day, Wednesday, Dec 19, 2018 at 8:30am."

VS shares extended their decline today after the stock fell 35 sen to 82 sen yesterday. On Friday (Dec 14), the stock closed lower at RM1.17 from RM1.32 on Thursday.

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