KUALA LUMPUR (Sept 26): Electronic manufacturing services (EMS) provider VS Industry Bhd closed its financial year 2023 (FY2023) on a stronger note than FY2022, following an 85.7% jump in its net profit for the fourth quarter ended July 31 to RM66.08 million from RM35.59 million in the previous year's corresponding quarter, as it recorded a higher revenue on increased sales orders from existing customers.

Quarterly revenue climbed 15.7% to RM1.16 billion from RM1 billion previously, its bourse filing showed. Earnings per share (EPS) for the quarter rose to 1.72 sen, from 0.93 sen.

This lifted its annual profit for FY2023 by 7.7% to RM183.92 million from RM170.76 million in FY2022, while revenue rose 17.6% to RM4.6 billion from RM3.91 billion. Annual EPS rose to 4.79 sen, from 4.47 sen previously.

The improved earnings for the quarter and year was also boosted by the absence of a one-off (non-cash) impairment on investment in an associate of RM26.8 million, as well as lower impairment loss on plant and equipment of RM4.7 million during the period — as opposed to the RM12.4 million recognised in the previous year's corresponding quarter.

The group declared a fourth interim dividend of 0.5 sen per share to be paid on Oct 27, with another final dividend of 0.5 sen per share proposed for shareholders' approval at its forthcoming annual general meeting, to be paid at a date to be announced. These raise its total dividend per share for FY2023 to 2.2 sen, versus two sen for FY2022.

Going forward, the group noted that the operating environment for businesses in Malaysia remains challenging due to heightened cost structure following the increase in labour, utility and financing expenditures.

“On a positive note, we have experienced an uptick in sales orders over the past quarter and we expect this momentum to sustain into the next financial year, based on our communication with customers, which are supported by [the] launching [of] new models.

“Barring unforeseen circumstances, the board opines that the financial performance of the group for the coming fiscal year will be satisfactory,” it said, adding that its management remains attuned to potential challenges and will continue to exercise prudence to ensure streamlined and efficient operations.

“This is further backed by our lean balance sheet with low net gearing, which gives us agility and serves as a strong financial buffer to navigate any unforeseen contingencies.”

Shares in VS Industry closed one sen or 0.99% higher at RM1.02 on Tuesday, valuing the EMS provider at RM3.95 billion.