KUALA LUMPUR (Jan 5): VS Industry Bhd’s shareholders today approved a 1.2 sen single tier final dividend through the annual general meeting, in respect of the financial year ended July 31, 2015 (FY15), payable on Jan 29.

Together with earlier-paid interim dividends of 3.6 sen per share, total dividend payments in respect of FY15 amounted to 4.8 sen or RM53.9 million, representing 40.6% of the Group’s FY15 net profit.

In a statement today, the group’s managing director Datuk Gan Sem Yam said VS Industry will continue to increase its research and development capabilities, as well as joint collaboration for new product innovations, to create more value for customers.

“As a key enabler to our customers’ supply chain, these efforts would enable them to achieve accelerated product development and optimized development costs, at the same time, benefitting us in the longer run,” he said.

For the first quarter ended Oct 31, 2015 (1QFY16), VS Industry saw net profit surge 70.8% to RM60.2 million, from RM35.2 million previously, as export orders picked up, in addition to foreign exchange gain.

“We are currently receiving highly encouraging feedback from our key customers on potentially larger orders flows to commence in the near term. This is in line with positive sales expectations on their part, as consumer sentiment in the US market continues to strengthen,” Gan said.

Therefore, he noted that VS Industry is upbeat on prospects for the rest of 2016, which would see a year of “sturdy” financial performance and “satisfactory” shareholder returns.

The group is engaged in full-service contract manufacturing and product assembly, as well as printed circuit board assembly for leading international consumer electronic brands.

VS Industry(fundamental: 1.3; valuation:2.1)'s share price ended the morning session at RM1.56, fallen one sen, with 2.1 million shares traded, giving it a market capitalisation of RM1.83 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)