KUALA LUMPUR, Sept 28 — Leading Electronics Manufacturing Services (EMS) provider V.S. Industry Bhd recorded a lower net profit of RM115.9 million for the financial year ended July 31, 2020 (FY20) compared with RM165.4 million in the same period last year.
Revenue, however, declined 18.5 per cent to RM3.24 billion in FY20 from RM3.98 billion previously.
Additionally, for the fourth quarter (Q4FY20), the Group posted a net profit of RM54.1 million versus RM56.3 million in the same quarter last year, while revenue decreased to RM882.6 million from 1.04 billion previously.
Its managing director, Datuk S.Y. Gan said the top and bottom-line decrease was chiefly attributed to the temporary closure of factories following the Movement Control Order (MCO) that was imposed in addition to lower orders from a key customer.
“We are pleased to deliver a strong recovery in our 4QFY20 performance against the backdrop of a difficult operating environment stemming from the COVID-19 pandemic. Orders from our existing customers are showing a healthy rebound by comparison to the preceding quarter.
“In fact, in addition to existing models, we will also be producing several new models that our customers are rolling out in 2021. For future expansion, we plan to increase our capacity by acquiring new plants,” he said in a statement today.
Gan also said that the United State (US)-China trade tensions continued to open up opportunities for VS.
He said the Group managed to clinch another new customer, Victory Innovations, from the US in August 2020 to produce cordless electrostatic sprayers on box-build assembly basis.
This certainly bodes well for the Group as a key supplier to Victory, he said, adding that Victory’s addition is yet another testament to the Group’s capability and track record, while the discussions with prospective customers remain ongoing.
“Given the strong performance in the quarter under review and the progressive developments, the board opines that the Group’s performance in the coming financial year to be better, underpinned by the rebound in global and local economies,” he said.
Meanwhile, the board declared an interim dividend of 0.8 sen per share for the quarter under review. It has also proposed a final dividend of another 0.8 sen, subject to shareholders’ approval at the upcoming annual general meeting.
“Total dividend per share for the current financial year amounts to 2.6 sen, representing a 41.5 per cent payout based FY20 earnings per share of 6.27 sen,” he added. — Bernama
