Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR, (Jan 26):Shares of VS Industry ( Financial Dashboard) (fundamental: 1.10; valuation: 2.4) surged at mid-morning on Monday, to hit a historical high of RM3.83 on the back of robust earnings outlook and expectation of a double-digit sales volume growth.

At 10.55am, its shares rose 27 sen to RM3.80 with 1.34 million shares traded between RM3.57 and RM3.83. VS Industry has a market capitalisation of RM717.53 million.

In a note on Jan 21, RHB Research raised its target price for the stock to RM4.50 (from RM2.95), with a 45.2% upside.

“The company will produce the third model of coffee machine in 4QFY15. It expects double-digit sales volume growth for the new model versus the outgoing model,” it said.

The research house maintained its "Buy" rating on VS Industry ( Financial Dashboard) after a meeting with management left its team feeling positive on the company's robust earnings outlook, driven by higher volume growth from its key customers, particularly Keurig.

Keurig is an American manufacturer of coffee brewers which is part of Keurig Green Mountain, Inc., that is headquartered in Massachusetts in the US. Its main product is the K-Cup, a single-serving coffee brewing system.

According to its 2014 annual report, the group saw its net profit soared more than 2½ times year-on-year to RM35.2 million from RM9.6 million in the first quarter ended Oct 31, 2014.

In the report, the group said revenue soared 47.4% to RM1.7 billion from RM1.2 billion previously, largely due to consolidation of its China-based company – V.S. International Group Ltd.

(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.)

      Print
      Text Size
      Share