Posted by mikebill > 2019-03-20 14:47 | Report Abuse

Then will benefit VS-I coz more products shifted to outside China from Bissell.

Posted by mikebill > 2019-03-20 14:50 | Report Abuse

Products with Bissell range from motorized Sweeper, vacuum dry-cleaner to carpet wet-cleaner.

Posted by unclelimhuat > 2019-03-20 15:05 | Report Abuse

https://www.klsescreener.com/v2/news/view/504816

Posted by unclelimhuat > 2019-03-20 15:05 | Report Abuse

US-based Bissell brings welcome relief to VS Industry
TheEdgeWed, Mar 20, 2019 - 1 hour ago

FOR homegrown electronics manufacturing services (EMS) provider VS Industry Bhd, newly secured job orders from US-based Bissell International Trading Co BV could not have come at a better time.

Recall that the stock, which has been on a downward trend since January last year, got hammered to a three-year low of 64 sen in December.

The management had then issued a profit warning, telling investors that earnings for the second half of its financial year ending July 31, 2019 (2HFY2019), were going to weaken as the group anticipated that order flow from a key customer might decline.

Compounding this was speculation that the group may have lost some job orders from the European multinational corporation (MNC), best known for its home care products. Some even went as far as to say that VS Industry may have lost the global brand as a client.

Its share price declined 69% last year before staging a rebound, rising 42% year to date to close at RM1.04 last Thursday.

On March 1, VS Industry announced that it had signed a three-year master supply agreement with Bissell — a leading home appliance company in the US — to manufacture its home care products on a box-build assembly basis.

Although no contract volume or amount was specified, managing director Datuk Gan Sem Yam expects Bissell to become the group’s second largest customer, contributing about 15% to 20% to its turnover in the coming years.

“Bissell is our first new key customer in recent years. The new contract is expected to drive our future earnings performance, but we may not see a significant contribution yet in FY2020,” he tells The Edge in an interview.

Currently, the group’s top three clients are the European client, Keurig Green Mountain Inc (a US-based hot beverage system company) and Zodiac Pool Systems Inc (a global manufacturer of pool and spa equipment).

Based in Michigan, Bissell is a family-owned home care solutions company founded in 1876. It is known for supplying households and businesses globally with vacuum cleaners, carpet-cleaning machines, cleaning formulas and pet-grooming products.

Bissell currently has three contract manufacturers — two in China and one in Mexico. VS Industry will be its first in Southeast Asia.

According to Gan, US-China trade tensions have opened up opportunities for VS Industry as Bissell, for example, had to move out some of its production lines from Shanghai.

“I met CEO Mark Bissell (the fourth generation of the founding family) at its US headquarters and his key management members in Hong Kong to discuss how VS Industry could absorb its orders in Shanghai. Subsequently, they came to Johor to visit our plant. Within less than six months, we managed to secure the contract,” he says.

Gan firmly believes that the US and China trade dispute will bring many business opportunities to Malaysian manufacturers, and hence, the prospects for VS Industry in the next three years should remain bright.

“What I can say is that Bissell will not be our only new client this year. We are confident of securing at least another two contracts by the end of this year,” he says.

Johor-based VS Industry is the fourth largest EMS provider in Asean, and among the top 50 in the world, with in-house printed circuit board (PCB) and battery-pack assembly capabilities.

The group manufactures products such as vacuum cleaners, coffee brewers, robotic pool cleaners, air purifiers and automatic paper dispensers for its clients.

“In the EMS industry, if you can secure one new contract every three years, you are considered doing very well. But we will be securing three new contracts this year alone. That’s something remarkable,” says the 62-year-old Gan, who joined VS Industry in 1982.

Besides Bissell, there are many other MNCs looking to relocate their production lines from China, he says.

Nevertheless, VS Industry will be selective as its production capacity is limited.

Assuaging investor concerns

Gan deems talk that it had lost the European MNC as a client as “simply ridiculous”.

“According to these people, we just lost them all of a sudden. Frankly, we were not worried at all, although we were quite shocked when we heard the rumours. We know our business model is sustainable, and we know that we still have the client,” he stresses.

He acknowledges that the European client had, towards the end of last November, revealed that it planned to shift a production line to a Taiwanese firm operating in the Philippines and another to a local competitor of VS Industry.

The European client, however, subsequently gave VS Industry a new production line — the world’s first and only one so far — to produce its latest groundbreaking product, which is currently sold out in the market.

Gan stresses that it is normal practice in the industry for clients to take away an old product from a manufacturer and replace it with a new product.

Posted by unclelimhuat > 2019-03-20 15:05 | Report Abuse

“All this happened when we were releasing our financial results in mid-December. Naturally, investors were concerned about the gap between the commencement of new jobs and completion of earlier ones. But to us, it is all about timing. If old things don’t go, new things will never come,” he says.

He points out that VS Industry was awarded “vertically integrated” status by the European customer in 2016.

“Logically, whenever the European client is launching a new product, it will come to us first.”

He admits that in the past, VS Industry had relied quite heavily on the European client. But today, the group has diversified its customer base. At the same time, the European client is making some changes to its business strategy.

“Certain people misunderstood. It is perfectly normal for MNCs to shift their production lines when they think the time is right,” Gan explains.

“But we view it positively. Think about it ... orders for old models will always decline whereas orders for new models will always increase. From our perspective, we don’t want old products to occupy too much capacity in our plant. We would rather be an EMS provider that is capable of making new products so that we can grow together with our client.”

Still, he warns that VS Industry may see a slight decline in earnings for FY2019 due to the six-month order gap from the European client between February and July this year.

“But we expect a double-digit recovery in both top line and bottom line come FY2020,” he states.

Posted by unclelimhuat > 2019-03-20 15:07 | Report Abuse

Please take note of the following:

“What I can say is that Bissell will not be our only new client this year. We are confident of securing at least another two contracts by the end of this year,” he says.

Posted by unclelimhuat > 2019-03-20 15:07 | Report Abuse

Please take note of the following:

“In the EMS industry, if you can secure one new contract every three years, you are considered doing very well. But we will be securing three new contracts this year alone. That’s something remarkable,” says the 62-year-old Gan, who joined VS Industry in 1982.

Posted by unclelimhuat > 2019-03-20 15:08 | Report Abuse

last but not least:

Stay tuned!!

Posted by DonyFernandes > 2019-03-20 15:13 | Report Abuse

I definitely will hold long term for VS. Fundamentally strogg company. Good management.

Posted by unclelimhuat > 2019-03-20 15:16 | Report Abuse

count down few more days for fantastic bombastic announcement and news!!!

Posted by unclelimhuat > 2019-03-20 15:16 | Report Abuse

stay tuned!!

Posted by goldenmamba93 > 2019-03-20 15:16 | Report Abuse

as 发哥say! stay tune!!

Posted by KassimBaba7 > 2019-03-20 15:19 | Report Abuse

Ikan bilis made myself dinner for today with contra. TQ uptrend.. Tomorrow main lagi if still got steam. Still got hold sikit lah.. not fully an arsehole.

Posted by Patrick13 > 2019-03-20 15:21 | Report Abuse

Take note for last sentences:

Still, he warns that VS Industry may see a slight decline in earnings for FY2019 due to the six-month order gap from the European client between February and July this year.

“But we expect a double-digit recovery in both top line and bottom line come FY2020,” he states.

https://www.theedgemarkets.com/article/usbased-bissell-brings-welcome-relief-vs-industry

Posted by whalehere > 2019-03-20 15:24 | Report Abuse

collect enough already anot, train starting soon..

Posted by sman > 2019-03-20 15:24 | Report Abuse

Closing Break Rm 1.00

Posted by unclelimhuat > 2019-03-20 15:32 | Report Abuse

Patrick13 bro, that one oledi factored in, otherwise last year won't from 1.3 to below rm1. All factored in~~~

Posted by unclelimhuat > 2019-03-20 15:32 | Report Abuse

stay tuned ya~~~

Posted by goodiewilly > 2019-03-20 15:32 | Report Abuse

Diam diam 50K at 96, untung lor..more than kopi money now ..hahaha

Posted by jnal > 2019-03-20 15:36 | Report Abuse

Haiya...potong stim lah..i waiting 945 already...buanglah cepat2..@uncelimhuat, u awal sangat keluar itu news..he3...i hope can collect 3rd time at 960 ..945 masih kempunan lo...lai2 sell plz...

Posted by geary > 2019-03-20 15:37 | Report Abuse

Hahaha... approximately as what...@unclelimhuat says...the future is very bright...these 6 months until Oct... probably the price is consolidating...unless there are huge whales... institutions or funds bidding higher n higher...Stay invested or Stay tuned...GL...!!!

Posted by aligorgor > 2019-03-20 15:38 | Report Abuse

naik so fast.....damn.....no bullet masuk at 0.96//////

Posted by mikebill > 2019-03-20 16:02 | Report Abuse

Waiting....

Posted by goodiewilly > 2019-03-20 16:14 | Report Abuse

Kopi money jadi lobster meal

Posted by anonyme > 2019-03-20 16:16 | Report Abuse

@goodiewilly NJHL! i bought at 0.965, but only earned kopi money...

Posted by haha12345 > 2019-03-20 16:28 | Report Abuse

will close high today...then tmr continue fly..

Posted by JuboqCapital > 2019-03-20 16:33 | Report Abuse

Tmrw 1.10 then straight to 1.50 next stop. Although new client name Bissell, VS is Bibbuy!!!!

Posted by kevinobc > 2019-03-20 16:44 | Report Abuse

TARGET PRICE 1.20 by this month

Posted by mikebill > 2019-03-20 16:54 | Report Abuse

Tomorrow put on your diving gears and bring your underwater spear guns. Let's go big sharks hunting.

Posted by blahbleh > 2019-03-20 17:00 | Report Abuse

1.10 tomorrow?

Posted by mikebill > 2019-03-20 17:02 | Report Abuse

107 vol 50M

Posted by unclelimhuat > 2019-03-20 17:11 | Report Abuse

what if another new customer another new project to be announced next week? hehehehehe stay tuned

Posted by hunterx2010 > 2019-03-20 17:15 | Report Abuse

Brace for impact

Posted by mikebill > 2019-03-20 17:20 | Report Abuse

Too early for that. Still in RFP mode. Need to stay tune till April.

Posted by pinetree88 > 2019-03-20 18:21 | Report Abuse

Most of SG listed contract manufacturing stocks actually went up after Q4 results as mostly results not as bad as earlier projected. Maybe same case for VS?

Posted by goodiewilly > 2019-03-20 18:40 | Report Abuse

50K bought at 96...you all say 110 tomorrow, I will sell at 106, make 5K profit first..suang ..hahaha...92 - 95 as told by unclelimhuat, I bought 96 lor, he hinted ..thanks

Posted by Hotstuff > 2019-03-20 18:41 | Report Abuse

buy more la so little

Posted by DAN84 > 2019-03-20 18:57 | Report Abuse

Ya stay tuned!!

Posted by sman > 2019-03-20 19:12 | Report Abuse

Tomorow Up Trend (Very Big Chance)Because VS Engine Just Warming Only!

Posted by VenFx > 2019-03-20 20:11 | Report Abuse

Coming back ?

Posted by d4rthv2d3r > 2019-03-20 20:59 | Report Abuse

VS go go!

Posted by unclelimhuat > 2019-03-20 21:37 | Report Abuse

stay tuned!! count down few days for bombastic announcement!!

Posted by DAN84 > 2019-03-20 23:50 | Report Abuse

Yeah! Can’t wait for that unclelimhuat! Stay tuned!!

Posted by ikah2000 > 2019-03-21 07:44 | Report Abuse

vs down down..warning qtr result fy19 not at good profit... all water fish trap into big cage....

Posted by anonyme > 2019-03-21 08:01 | Report Abuse

sozai, now u only know?
ppl already knew this since last Dec..

Posted by goodiewilly > 2019-03-21 08:16 | Report Abuse

Unclelimhuat, what is big news next week? QR be bad, everyone knew and caused heavy price dropped. New contract? No more big effect as Brussels should be the biggest? Dont know what else? Give some hints lor.. you were so detail last round

Posted by unclelimhuat > 2019-03-21 08:44 | Report Abuse

stay tuned!!!

Posted by geary > 2019-03-21 09:04 | Report Abuse

Malaysia's Biggest State Fund Sees Strong Revival for Stocks | https://www.klsescreener.com/v2/news/view/505124

Posted by kevinobc > 2019-03-21 09:09 | Report Abuse

as expected it will rise , target price at the moment rm1.20

Posted by johnson6305 > 2019-03-21 09:22 | Report Abuse

VS fy19 results not good? Another non-factual shout from mouth? Common investors, be more intellectual in our comments - as investors, we can look into constructive criticism of their management style as well as the long/short term prospects - but just shouting without facts are purely irresponsible but if your objective is to create market chaos, then it's fine.