KUALA LUMPUR (Dec 4): VS Industry Bhd (KL:VS) is back in the black for the quarter ended Oct 31, 2025 (1QFY2026), as seasonally stronger sales and the reversal of impairment losses on trade receivables lifted it from a net loss position during the previous quarter.  

Net profit for 1QFY2026 totalled RM30.63 million, a turnaround from the RM33.04 million net loss recorded in the preceding quarter.

On a year-on-year (y-o-y) basis, 1QFY2026 net profit was only slightly higher by RM33,000, compared to RM30.6 million previously, while operating profit rose 4% to RM50.63 million. Quarterly revenue eased 2.9% y-o-y to RM1.078 billion from RM1.11 billion.

VS Industry declared a first interim dividend of 0.4 sen per share, unchanged from last year, payable on Jan 28, 2026.

The group said its order flow has picked up, with several new models from existing customers entering mass production during the first quarter.

“More new models are expected to follow suit. The group has also secured a new customer, with production slated to commence in the near future,” VS Industry said in its bourse filing on Thursday.

On prospects, VS Industry said utilisation rates at its Philippines operations continue to improve, with additional upstream capabilities such as plastic injection moulding and PCB assembly being added to enhance cost efficiency and vertical integration.

As an export-oriented group, VS Industry said it expects the impact of a stronger ringgit to be manageable, supported by natural hedges from US dollar-denominated proceeds used for raw material and component purchases, as well as partial customer billings in ringgit.

It remains cautiously optimistic of delivering better performance for the financial year ending July 31, 2026, underpinned by its customer order pipeline, lean operations and solid balance sheet.

Shares in VS Industry closed unchanged at 46 sen on Thursday, valuing the group at RM1.82 billion. Year to date, the stock has fallen 58.8%.