KUALA LUMPUR (June 19): Electronic manufacturing services (EMS) provider VS Industry Bhd (KL:VS) said its third quarter net profit surged 103% from the year before, mainly due to higher orders as well as a favourable product sales mix in Malaysia.

Net profit for the three months ended April 30, 2024 (3QFY2024) rose to RM54.42 million from RM26.77 million a year earlier, while revenue rose slightly to RM1.01 billion from RM996.78 million. Earnings per share rose to 1.43 sen from 0.70 sen, its bourse filing showed.

The group declared a third interim dividend of 0.4 sen per share, to be paid on July 26, taking its nine-month dividend payment to one sen per share, down from 1.2 sen per share in the previous year's corresponding period.

In a statement, VS Industry’s managing director Datuk SY Gan said the group has experienced a healthy pickup in sales orders from key customers following improved consumer sentiments and normalisation of its customers’ inventory levels.

“In addition, launches of several new product models by certain customers serve to sustain market interests as well. Overall, we anticipate this progressive uptrend to prevail in the near foreseeable future,” he said.

“On another positive note, with the recent successful development of several new processes in-house, we have strengthened our vertical integration capability. Mass production for our key customers has already started for some of these processes,” he said.

At the same time, Gan said the group continues to have active engagements with its key customers in Malaysia, Indonesia, Singapore, and China, to explore further opportunities that are value-accretive to both parties.

“Aside from that, the ongoing discussions with prospective customers remain in progress and we look forward to expanding our clientele by the calendar year. The board opines that the financial performance of the group for the remaining quarter will continue reflecting improving performance,” he added.

For the nine months ended April 30, VS Industry’s net profit increased 1.33% to RM119.41 million from RM117.84 million a year prior, though revenue fell 11.04% to RM3.06 billion from RM3.44 billion.

Shares of VS Industry closed one sen or 0.86% lower at RM1.15 on Wednesday, giving it a market capitalisation of RM4.5 billion. Year-to-date, the counter has gained over 36%.