VS narrows net loss in Q4 to RM22mil as revenue rises

KUALA LUMPUR: VS Industry Bhd reported a reduced net loss of RM22 million in the fourth quarter, ending July 31, 2026, compared to RM33 million the previous year, as revenue rose 16.3 percent year-on-year to RM998.6 million. The growth in revenue was driven by higher sales orders from significant customers, even with a RM39.7 million impairment loss on plant and equipment, according to VS' disclosure with Bursa Malaysia.

However, the electronic manufacturing services company posted a net loss of RM53.82 million for the full year, as opposed to a net profit of RM36.71 million in the prior year, primarily due to lower orders from key customers impacted by weak consumer sentiment globally. This decline in orders affected the overall production capacity utilization, and customers were also implementing cost optimization measures.

Overall revenue for the year fell 3.6 percent to RM3.65 billion, down from RM3.78 billion. VS Industry did not distribute a dividend for the quarter, resulting in a total dividend for FY26 of 0.4 sen per share, or RM15.4 million. Managing Director Datuk S Y Gan noted that persistent global trade uncertainties and weak consumer demand had dominated the year.

Customer orders began to rebound ahead of the year-end festive season, with the group anticipating the positive trend to continue in the next quarter. Additionally, customers plan to launch new models in the upcoming fiscal year to maintain market competitiveness. In the Philippines, the operations have been progressing well, with higher utilization rates as new models entered production.

Although the plant has not yet reached the break-even point to cover fixed costs, utilization has improved due to increased production output, Gan said.