VS Industry poised for re-rating as earnings recover, orders improve
KUALA LUMPUR: VS Industry Bhd could see a re-rating as improving orders, higher plant utilisation and customer diversification support an earnings recovery, said UOB Kay Hian Research.
VS Industry Bhd could see a potential re-rating as the company's earnings recover, bolstered by improving orders, higher plant utilisation, and customer diversification, according to UOB Kay Hian Research. The electronics manufacturing services provider's established manufacturing capabilities, technical expertise, and spare capacity position it well to secure new programmes as customers diversify their manufacturing operations.
VS Industry returned to profitability in Q4 FY26, posting a core net profit of RM21.4 million, which was higher than expected and in contrast to the previous quarters' losses. For FY26, revenue fell by four per cent year-on-year, but analysts remain optimistic about a steady recovery in customer orders ahead of the year-end festive season, prompting them to raise their FY27 and FY28 earnings forecasts by four to five per cent. UOB Kay Hian Research maintains a Buy rating on VS Industry with a target price of 35 sen.
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