As you can see, when we think of semiconductor IT company, usually we will think about Penang. Penang is a house to big local player such as Vitrox, Pentamaster, MMSV and etc. 

Melaka have prominent MNC player which are servicing the automotive industry such as INFINEON, DOMINANT OPTO, POSSEHL ELECTRONICS and others.

The management at VIS had foresee that demand will pent up more as more usage of electronic will be needed in electric vehicle. The company had in November 2020 purchased 3 pieces of land in Melaka to expand their research and development as well as production.

The plant will be slated to be operational at mid of 2022, which will be looking to contribute to the financial performance of the company.

IS VIS STILL ATTRACTIVE DESPITE SHARE PRICE AROUND RM 1.50 ?

There are several reason to see VIS having more potential upside at the current market price

1. With 174.5 million shares issued, at the current price of RM 1.50, VIS market capitalization is just RM 263 million. There are plenty of upside as the company growth prospect is bright and demand of it's product are needed more and more. A well performing semiconductor company can easily ace into RM 1 billion market capitalization.

2. VIS can transfer listing into the main market with the current performance, which will open up more fund house / unit trust to invest into the company.

3. VIS current share base of 174.5 million can be candidate of bonus issue in the future.

4. The unique product that VIS offer can give an operation gross margin of 50% which is very high and lucrative.  With the expansion completion in 2022, if VIS can score a revenue of RM 100 million, we can expect RM 50 million in gross profit margin.

I tend to believe that if key customer continue to place more order with VIS for it's product, they will also buy the shares of VIS which will see VIS share price heading higher. This will be a win win situation for the customer and for VIS in a whole.