KUALA LUMPUR (March 30): VS Industry Bhd’s net profit for the second quarter ended Jan 31, 2021, surged 92.17% to RM63.79 million, from RM33.2 million a year ago, due mainly to higher sales orders and favourable product sales mix.

Meanwhile, its quarterly revenue rose 21.82% to RM999.31 million, from RM820.33 million a year ago, its filing to Bursa Malaysia showed.

The group declared a second interim dividend of 1.2 sen, which will be paid on April 30. The total dividend per share for the current financial year is 2.4 sen, which is higher than one sen in the previous year.

For the first half ended Jan 31, 2021, the group’s net profit jumped 60.54% to a record high of RM130.47 million, from RM81.27 million a year earlier.

Its revenue for the period climbed 7.09% to RM1.99 billion, from RM1.85 billion a year earlier.

The group said the improved earnings for the current quarter and cumulative quarters were mainly attributable to higher sales orders from existing key customers coupled with favourable product sales mix in Malaysia.

“We are thrilled that our first half net profit hit the RM130 million mark for the first time in the group’s history, notwithstanding the Covid-19 pandemic,” the group’s managing director Datuk SY Gan said in a statement.

He also said the group continues to be kept busy fulfilling customers’ orders, which remain strong and are sustaining at healthy levels.

“There will also be several new product models coming into production progressively over the coming quarters. With this, our present capacity is expected to be filled up by the end of 2021,” he added.

On the other hand, he said the construction of the group’s new facilities at i-Park @ Senai Airport City, Senai, Johor, is on track to be completed in the next few months.

According to him, upon completion, the group’s total built-up area in Malaysia would increase by 25% to more than two million square feet.

He also noted production of certain new models will then take place at the new facilities along with the relocation of VS Industry’s headquarter to the new buildings.

“All in all, we are cognizant of the prevailing challenges. Nonetheless, against the backdrop of nascent economic recovery supported by the planned mass vaccination exercise, coupled with prudent planning, careful execution by the management along with the encouraging order flow from our customers, the board opines that the financial performance of the group for the remaining quarters will be satisfactory,” he said.

At noon break, VS Industry fell one sen or 0.35% to RM2.82, valuing the group at RM5.31 billion.