• Leading Electronic Manufacturing Services (EMS) player notes 27% higher revenue in 2Q15 from rising sales in Malaysia operations
• Declares second interim dividend of 3.0 sen per share
• Positive prospects in light of strengthening consumer sentiment in the United States (US)

Johor Bahru, Malaysia, 26 March 2015 – V.S. Industry Berhad (VSI; 威城集团; Bloomberg: VSI MK; Reuters: VSID:KL), one of the world's top EMS players, noted a three-fold rise in net profit to RM18.3 million for the second quarter ended 31 January 2015 (2Q15) on 26.7% higher revenue to RM465.4 million.

In comparison, group net profit in the previous corresponding quarter (2Q14) stood at RM3.8 million on revenue of RM367.4 million.

VS Group Managing Director Datuk Gan Sem Yam stated that the 2Q15 results were commendable despite being a seasonally-low quarter.

The Malaysian operations was the Group's largest revenue contributor with RM317.5 million in sales, which grew 44.3% year-on-year compared to RM220.0 million in 2Q14.

The Group’s China and Indonesia plants contributed the balance RM128.0 million and RM19.2 million respectively. Datuk Gan stated that the Group was optimistic of its outlook in the foreseeable future.

“The strengthening US economy thus far bodes well for consumer sentiment, in light of improving new home sales, firming inflation and other positive indicators. This positions our key customers favourably, which are in the consumer electronics sector, and correspondingly for VSI.”

“We are hopeful of continuing our positive performance in the second half of FY2015,” concluded Datuk Gan.

VS declared a second interim dividend of 3.0 sen per share in respect of the financial year ended 31 July 2015 (FY2015), which would be paid on 15 May 2015 to shareholders on the Record of Depositors on 30 April 2015.

Together with the previously-declared first interim dividend of 3.0 sen per share, VS has declared a total of 6.0 sen in respect of FY2015. The cumulative dividend payout of RM12.4 million in respect of FY2015 represents 23.2% of net profit in 1H15.

VS has a dividend policy of distributing at least 40% of group net profit to shareholders. For the cumulative first half ended 31 January 2015 (1H15), group revenue rose 25.5% to reach RM1.0 billion from RM804.6 million previously, while net profit tripled to RM53.5 million compared to RM13.3 million a year ago. 1H15 basic earnings per share jumped to 26.9 sen from 7.4 sen in the previous corresponding period.