(VSI MK/BUY/RM2.42/Target: RM3.10)

We met with VSI’s management and feel reassured of the company’s prospects. Besides the commencement of new contracts for its key customers in 2H17, key catalysts include: a) contract wins from the expansion of customer base, and b) new projects in China. VSI remains our top pick for the manufacturing sector. Maintain BUY with a higher target price of RM3.10 after we raise our FY19F EPS by 13%. Our target price is based on 14x fully diluted FY19F PE

Source: UOB Kay Hian Research - 14 Sept 2017