KUALA LUMPUR - VS Industry Bhd’s net profit fell nearly 4% to RM15.38 million ($225,000) for its second quarter ended Jan 31, from RM16 million a year ago, mainly due to a sharp contraction of foreign exchange (forex) gains, which fell to RM915,000 from RM12.79 million a year earlier.

The electronics manufacturing services provider’s gross profit rose 48% to RM75.3 million in 2QFY2025 against RM50.77 million a year ago. Its operating profit came in higher, too, at RM38.1 million, up 14% from RM28.1 million a year ago, according to the company’s filing.

Quarterly revenue increased 2.8% to RM908.79 million ($204.9 million) from RM884.06 million in 2QFY2024.

The company said earnings growth was primarily driven by the Malaysia segment, whose revenue grew by 23.8%. However, revenue from the Singapore and Indonesian operations declined 52% and 7.5%, respectively.

For the six months ended Jan 31, VS Industry’s net profit shrank 29.2% to RM45.98 million, compared to RM64.99 million in the previous year, on reduced sales orders from existing customers, higher operating expenses, and unfavorable forex.

Cumulative revenue remained relatively stable at RM2.02 billion.

In a separate statement, managing director Datuk Gan Sem Yam observed that the macroeconomic landscape has faced renewed challenges due to a series of new and proposed tariffs introduced by the current US administration which have intensified global economic uncertainties.

This led VS Industry to adopt a more cautious approach to strategic decisions and operational planning.

Gan highlighted that the customer order flow in Malaysia remains generally healthy, albeit with more cautious order placements. This cautious trend is likely to continue in the coming months. However, he expressed optimism about the anticipated new model launches by certain customers, especially towards the final quarter of the fiscal year.

Regarding the Philippines operations, he noted that the group is awaiting the delivery of machinery to begin production test runs, which are expected to commence within the next two months.

The company remains optimistic about its long-term outlook, supported by a strong customer base, enhanced vertical integration capabilities, solid financial standing, and prudent management practices.

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