V.S. Industry 1Q net profits more than triples to RM35.22 mil

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KUALA LUMPUR (Dec 17): Electronic Manufacturing Services (EMS) provider V.S. Industry Bhd achieved a 268% jump on net profits for the first financial quarter ended Oct 31, 2014 (1QFY15) to RM35.22 millon, from RM9.56 million in the same quarter a year ago, on higher sales and a better sales mix, contributed by its Malaysian operations.

In an announcement to Bursa Malaysia today, V.S. said its revenue for 1QFY15 had grown 24.5% to RM544.56 million, from RM437.26 million in 1QFY14, due to higher sales achieved.

V.S. managing director Datuk Gan Sem Yam said the first and fourth quarters of the financial year, were the strongest for the company, as customers increase orders in preparation for the year-end festivities.

“This commendable 1QFY15 [results] reflects our partnership with strong global brands who are still focused on expanding their market share, and along with our key customer development, we have invested substantially in production capacity in our Malaysian operations in recent years, and are now reaping the benefits of these strategies,” he said in a separate statement today.

The company reported an earnings per share (EPS) of 17.94 sen for 1QFY15, more than tripple of 5.28 sen recorded in the previous corresponding quarter.

V.S. had also declared dividend per share of three sen for 1QFY15, against 2.2 sen per share a year ago.

On future prospects, Gan said the company has ample capacity to take on more orders, to support its customers, going forward.

“We recently moved into a larger factory in Indonesia, to serve more customers; and together with the strong base in Malaysia, are poised to serve the EMS requirements in South East Asia.”

V.S shares has been on an upward trend, climbing from RM1.34 a year ago, hitting the peak of RM2.58 on Nov 24 this year. It gained two sen to RM2.17 today, rising to a market capitalisation of RM435 million.