KUALA LUMPUR: V.S Industry Bhd's (VS Industry) net profit more than doubled to RM54.42 million in the three months ended April 30, 2024 from RM26.77 million registered a year ago, driven by higher orders and a favourable product sales mix in Malaysia.
In a filing with Bursa Malaysia, it said revenue expanded slightly to RM1.01 billion from RM996.78 million.
In keeping with its regular practice, the board has announced a third interim dividend of 0.4 sen per share for the past quarter.
This brings the total dividend for the current financial period to 1.0 sen per share.
VS Industry maintains a strong financial position, with a low net debt-to-equity ratio of 0.07 as of the end of April 2024.
This is backed by net assets worth RM0.58 per share and substantial cash reserves totaling RM692.9 million.
VS Industry managing director Datuk SY Gan said the group has experienced a healthy pickup in sales orders from key customers following improved consumer sentiments and normalisation of its customers' inventory levels.
"In addition, launches of several new product models by certain customers serve to sustain market interests as well. Overall, we anticipate this progressive uptrend to prevail in the near foreseeable future," he said in a statement today.
"On another positive note, with the recent successful development of several new processes in-house, we have strengthened our vertical integration capability. Mass production for our key customers has already started for some of these processes," he said.
At the same time, Gan said the group continues to have active engagements with its key customers in Malaysia, Indonesia, Singapore, and China, to explore further opportunities that are value-accretive to both parties.
"Aside from that, the ongoing discussions with prospective customers remain in progress and we look forward to expanding our clientele by the calendar year. The board opines that the financial performance of the group for the remaining quarter will continue reflecting improving performance," he added.
As for the nine months ended April 30, VS Industry's net profit rose 1.33 per cent to RM119.41 million from RM117.84 million a year ago, while revenue declined 11.04 per cent to RM3.06 billion from RM3.44 billion.