VS Industry's 1Q net profit rises 71%; pays 1.5 sen dividend

VS Industry's 1Q net profit rises 71%; pays 1.5 sen dividend

By Yimie Yong / theedgemarkets.com   | December 15, 2015 : 6:41 PM MYT   

KUALA LUMPUR (Dec 15): Johor-based electronic manufacturing services provider [size=16]VS Industry Bhd ([You must be registered and logged in to see this image.] Valuation: 2.10, Fundamental: 1.30) saw its net profit jump 70.8% to RM60.18 million in the first quarter ended Oct 31, 2015 (1QFY16) from RM35.22 million a year earlier, on higher sales from its Malaysian operations and foreign exchange gain.

1QFY16's revenue grew 12.5% to RM612.47 million from RM544.56 million, its filing to Bursa Malaysia today showed.

VS Industry said the improved earnings for the quarter was mainly due to higher sales from its Malaysian operations, while it recorded a net foreign exchange gain of RM14.61 million versus RM61,000 in the same period last year.

It also declared a first interim single-tier dividend of 1.5 sen per share for the financial year ending July 31, 2016 (FY16), payable on Mar 11, 2016.

VS Industry said the group's operational environment remains strong in Malaysia.

With continued strong support from existing customers and new potential customers, the company is optimistic that it will perform well for the remainder of the current financial year.

VS Industry shares closed 7 sen or 4.67% higher at RM1.57 with 6.82 million shares changing hands, for a market capitalisation of RM1.83 billion.

Year to date, the counter has risen over three times from when it was trading at about 50 sen per share.

(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.)
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