KUALA LUMPUR (March 27): VS Industry Bhd (KL:VS) fell to its lowest in more than a decade as an unexpected quarterly loss at the electronic manufacturing services prompted analyst downgrades.
The stock fell as much as 4.5 sen or nearly 16% to 24 sen on Friday, a level last seen in 2015. VS Industry was trading at 24.5 sen at 9.45am, as nearly 60 million shares changed hands. The company’s market capitalisation stood at RM967 million based on the last price.
At least three research houses cut their recommendations for the stock.
VS Industry will likely slip into the red for the year ending July 2026 (FY2026), CIMB Securities said and lowered its rating to 'reduce' from 'buy' following the results.
The research house also warned of a challenging operating environment that will lead to a more cautious consumer spending, dragging on orders for VS Industry.
Share prices of VS Industry have fallen by 50% year-to-date but the decline extends back to 2025, as the company grappled with multitude of difficulties from US tariffs to foreign exchange losses, and from losses at its Philippines operations to now geopolitical conflict in the Middle East.
The decline since the beginning of last year has wiped more than RM3 billion from its market value.
“The ongoing conflict involving Iran and Gulf states has amplified global risk aversion and exacerbated supply chain disruptions, with no clear resolution in sight,” Public Investment Bank said.
The house also cut VS Industry to 'neutral' from 'trading buy' after slashing its earnings projections by an average 68% for FY2026-FY2028 to also account for higher cost.