V.S. Industry: Buying opportunities emerge following selldown Buy

We upgrade our recommendation on V.S. Industry (VSI) to BUY from HOLD following the recent fall in its share price. We lower our fair value to RM1.04/share (previously RM1.31/share) pegged to a lower CY19F PE of 14x (previously 15x) amid the anticipated order slowdown in CY19 and reduced market capitalization of VSI. We cut our FY19F-FY21F forecasts further by 6-15% mainly on account of lower printed circuit board assembly (PCBA) revenue tied to reduced contribution from VSI’s key customer in 2HFY19.

Despite the expectations of declining order flow for its key customer, we understand that the group is currently in various stages of discussion with more than five prospective MNC customers to secure new orders that would fill the excess capacity in its facilities.

Others:

YTL Power: Decent dividend yield of 5.7% Hold

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Source: AmInvest Research - 9 Jan 2019