The run-up today might points to the quarter result to be released very soon. The results is rumoured to be stellar. The highest price done to date after the recent share split was 1.62 achieved on 19^th November 2015. I expect this 1.62 resistance level to be broken in the immediate term possibly this week itself, from the look of the frenzied trading today. VS closed the morning session today at 1.56 with a gain of 6 cents. Hopefully it will re-test its high of 1.62 today or tomorrow and thereafter hit my initial TP of 1.80.

VS Financial Information

VS Quarter Report History

 

 

Date	Financial Year	No.	Financial Quarter	Revenue (RM,000)	Profit Before Tax (RM,000)	Net Profit (RM,000)	Earning Per Share (Cent)	Dividend (Cent)	NTA (RM)	Download Report
29/09/2015	31/07/2015	4	31/07/2015	506,843	57,073	52,702	4.79	2.40	0.680	45%
23/06/2015	31/07/2015	3	30/04/2015	420,100	34,456	26,516	12.89	6.00	3.080	595%
26/03/2015	31/07/2015	2	31/01/2015	465,384	25,456	18,296	9.07	3.00	3.020	387%
17/12/2014	31/07/2015	1	31/10/2014	544,558	42,701	35,224	17.94	3.00	2.930	268%
30/09/2014	31/07/2014	4	31/07/2014	534,453	21,252	36,450	19.97	7.00	2.840	1%
25/06/2014	31/07/2014	3	30/04/2014	375,996	4,137	3,815	2.11	2.50	2.680	9939%
26/03/2014	31/07/2014	2	31/01/2014	367,370	6,424	3,758	2.07	0.00	2.710	9295%
31/12/2013	31/07/2014	1	31/10/2013	437,263	10,180	9,562	5.28	2.20	2.650	25%
27/09/2013	31/07/2013	4	31/07/2013	359,780	38,809	36,169	19.96	0.03	2.650	272%
25/06/2013	31/07/2013	3	30/04/2013	242,349	-121	38	0.02	0.00	2.220	100%
26/03/2013	31/07/2013	2	31/01/2013	233,943	294	40	0.02	0.00	2.230	99%
27/12/2012	31/07/2013	1	31/10/2012	327,839	10,465	7,663	4.23	2.00	2.220	34%

 

Background

VS Industry Berhad Malaysia and VS International Group Limited(Hong Kong, China) are public listed companies in Malaysia and Hong Kong with over 27 years of Multi-products OEM contract manufacturing/EMS experiences. We are among the top 50 Contract Manufacturing services providers in the world. Our operations locate in Malaysia, Indonesia, Vietnam and China employing over 15,000 workers and operating on more than 5 millions sq. ft. of manufacturing space and still adding. We are specialist in Plastic Injection Molding(one of the largest in the region), Plastic Secondary Finishing, Tools design and fabrication, PCB assembly via Surface Mount Technology(SMT), Auto Insertion(AI), Chips on Board(COB), Manual Insertion(MI), Final Product Box Build having the same capability like any world renowned Electronic Manufacturing Services companies. VS Industry has also demonstrated excellent capability in the production of a wide range of Remote Control units - ODM/OEM, Printers, Vacuum Cleaners, Home Appliances, White Goods, Audio, Video, DVD products for world class companies in full turnkey, pseudo-turnkey and consigned mode.

VS closed today above its resistance of 1.53 which now becomes its support. Should this support is broken; next level support is at 1.47 and its next resistance is quite far at 1.62.

Going forward, what we can expect from VS :-

1-    It is anticipated that VS to release stellar Qtr Report towards the end of the month which should be better than market expectations.

Recall that the group had recently reported 4Q15 NP of RM52.7m (+99% QoQ; +44% YoY), bringing its FY15 NP (+148% YoY) to RM132.7m which beat consensus’ FY15 estimates by 8%.

2-    Proposes Bonus Issue of Warrants to further increase shareholders’ equity participation. VS recently proposed a bonus warrant issuance of up to 290.8m bonus warrants on the basis of one (1) bonus warrant for every four (4) existing VS’s shares. The exercise price of the bonus warrants has been fixed at RM1.65/warrant which represents a premium of 18.06% over the five-day VWAP market price up to and including 16th October 2015.

3-    Enjoying full swing benefits from strong USD trend.

VS group does not have any currency hedging position currently as the management is of the view that the natural hedging through raw materials (with 50% of its COS in USD) is sufficient to offset the risk, especially under the current strong USD trend. On the currency sensitivity analysis according to its Annual Report 2014, every 10% fluctuations in the USD will impact its FY14 bottomline by 8.8%.

4-    Final single tier dividend of 1.2 sen per share

           VS securities will be traded and quoted "Ex - Dividend” as from: 15 Jan 2016
           The last date of lodgment : 19 Jan 2016
            Date Payable : 29 Jan 2016

The final single tier dividend of 1.2 sen per ordinary share of RM0.20 each is subject to the approval by shareholders of V.S. Industry Berhad at its forthcoming Thirty Third Annual General Meeting to be held on 5 January 2016.

5-    Quotes from the Managing director Datuk Gan Sem Yam said: “Going forward, despite the ongoing economic climate, we intend to continue improving our performance by ably supporting our customers, becoming more efficient in production and further developing our research and development capabilities to hone our competitive edge.” 

“We are confident that these strategies will continue to take our current financial year to greater heights,” Gan said. 

For the FY15, the group recorded a revenue of RM1.93bil, an increase of RM221.8mil, or 12.9% compared to the preceding year. Its pre-tax profit was RM159.7mil,  up 280.3% or RM117.7mil over the same period. 

“The  improved  earnings  for  the  current  quarter  was  mainly  attributable  to  better  sales mix  contributed  by  the  Malaysian  operations,  and  the  improved  earnings  for  the cumulative  quarter  was  mainly  due  to  higher  revenue as  well  as  better  sales  mix contributed by the Malaysian operations,” it said. 

The company also recorded a RM24.44mil net foreign exchange gain compared with a loss of RM2.1mil in FY14.

6-    VS is My Largest Investment - Koon Yew Yin

http://klse.i3investor.com/blogs/koonyewyinblog/79049.jsp

 7-    My TP RM1.80 to RM2.00 (0- 3 months)

Reference :

http://klse.i3investor.com/blogs/kcchongnz/86545.jsp

http://klse.i3investor.com/blogs/kenangaresearch/85109.jsp

HAPPY TRADING & GOOD LUCK

BURSAMASTER

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