KUALA LUMPUR – VS Industry posted fiscal second quarter net profit of RM44.5 million (US$10.5 million), down 30% year-over-year and up 13% sequentially.

The electronics manufacturer's fiscal second quarter revenue increased 1.5% year-over-year and 4.8% sequentially to over RM1 billion, fueled by higher contributions from its Malaysian operations.

For the period ended Jan 31, net profit was underpinned by lower orders for PCB assembly from key customers, coupled with disruption in the global supply chain, which affected supply of components.

For the six-month period ended Jan 31, net profit fell 35.7% to RM83.9 million, and revenue declined 0.2% to nearly RM2 billion year-over-year.

The group said overall customer demand remains strong and is largely expected to sustain in the coming quarters.

“Mass production for the new key customer is expected to ramp up once the labor sufficiency issue is resolved. Efforts are ongoing to step up hiring locals following the ban on bringing in foreign workers since 2020. The overall labor situation continues to be taxing. The board is cautiously optimistic on the outlook of the group and opines the financial performance of the group for the remaining quarters will be satisfactory,” the company said.

Ed.: RM1 = US$0.24

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