KUALA LUMPUR: V.S. Industry Bhd says it remains upbeat on its prospects in 2025, partially buoyed by the recent interest rate cuts in the United States.
Speaking after the annual general meeting (AGM), managing director Datuk S.Y. Gan said the Federal Reserve rate cuts provide a welcome boost to businesses and consumer sentiment.
VS Industry's optimism is also underpinned by the healthy demand outlook from its existing customers and its new manufacturing facility in the Philippines.
"The uptrend in orders is sustaining and further supported by upcoming new product launches from our key customers," he said.
Gan said the company continues to be excited by its venture in the Philippines given the potential.
He said it has secured new orders with an expected aggregate value of RM1.5 billion over the next two years.
He added that the renovation of its new plant is at its tail end, and the group target to start production in the coming months.
"Our optimism is also reflected in our capital expenditure (capex) strategy. We have allocated around RM150 million in capex for FY25 with the bulk of it earmarked for the facility in the Philippines, acquisition of new factory in Indonesia as well as maintenance capex for our Malaysia operations.
"These investments enable us to strengthen our foundation as we advance towards new horizons for the group," he said.
VS Industry continues with its quarterly dividend payout practice in FY24, in which total dividend per share amounted to 2.2 sen or RM84.8 million.
This translates to a 43.4 per cent payout based of FY24 profit after tax and non-controlling interest of RM195.5 million after excluding the one-off non-cash accounting net gain, which exceeding the company's dividend policy of a 40 per cent payout of net profit.