KUALA LUMPUR (March 28): V.S. Industry Bhd posted a 50.3% jump in net profit to RM27.5 million or 2.37 sen per share in the second quarter ended Jan 31, 2016 (2QFY16), from RM18.3 million or 1.82 sen per share a year ago, due to stronger sales and better product mix.

Quarterly revenue rose 7.7% to RM501.1 million in 2QFY16, versus RM465.4 million in the previous corresponding quarter, the integrated electronics manufacturing services (EMS) provider told Bursa Malaysia in a filing today.

In a separate statement today, the group said its Malaysia operations remained the largest revenue contributor and was marginally changed at RM311.7 million, versus RM317.5 million previously.

Revenue generated from China and Indonesia operations, was however grew 28% and 31.3% year-on-year (y-o-y) to RM163.8 million and RM25.2 million respectively.

It declared a second interim single-tier dividend of 0.8 sen per share for the the financial year ending July 31, 2016 (FY16), payable on May 13.

For the cumulative six months (6MFY16), its net profit was 63.8% higher at RM87.68 million or 7.58 sen per share, as compared to RM53.52 million or 5.38 sen a share a year ago; while revenue gained 10.3% to RM1.11 billion, from RM1.01 billion in 6MFY15, driven by better sales mix and improved efficiency.

Commenting on this, V.S. Industry's managing director Datuk Gan Sem Yam said the group continues to expand its profile in the EMS industry, as it moves up the value chain in supporting the rigorous manufacturing requirements of internationally-acclaimed consumer electronic brands.

"In addition to successfully meeting larger production orders in line with our customers' business growth, we are also making good progress in our collaboration with customers, to develop product innovations key to their brand success," he added.

"As such, we are confident of our prospects in the second half of FY16," he said.

Moving forward, the group's operational environment remains strong in Malaysia.

"With continued strong support from the existing customers and new potential customers, the board is optimistic that the group will perform well for the current financial year," it added.

Shares in V.S. Industry closed up one sen or 0.8% at RM1.26 today, for a market capitalisation of RM1.43 billion.