KUALA LUMPUR (Sept 30): VS Industry Bhd (KL:VS) hit a six-month high on Wednesday after the electronic manufacturing services provider reported a narrower-than-expected quarterly loss.
The counter rose as much as 21% or five sen to an intra-day high of 28.5 sen — its highest level since March — in early trade on Wednesday. The stock was trading above the target prices of at least six analysts tracked by Bloomberg.
The stock later pared some gains to settle at 28 sen, still up 4.5 sen or 19%, with some 201 million shares changing hands. VS Industry was the second most actively traded stock on Bursa Malaysia on Wednesday, with the company valued at about RM1.1 billion at its latest price.
VS Industry’s core loss for its financial year ended July 31, 2026 (FY2026) was RM21.5 million, narrower than the consensus forecast of RM32 million, Hong Leong Investment Bank said.
The research house, which raised its target price to 23 sen and upgraded the stock to “hold”, expects stronger sales from VS Industry’s key customers in the coming quarter, supported by pre-festive inventory build-up. It also expects the company’s Philippines operations to turn profitable.
Hong Leong Investment Bank raised its earnings forecasts by 85% for FY2027 and by 70% for FY2028, citing stronger sales from the Philippines operations and improved group margins as the unit ceases to drag on earnings.
RHB Investment Bank, one of the more bullish research houses on VS Industry with a 30 sen target price and a “buy” call, expects the company’s margins to recover progressively as utilisation and programme volumes increase, although supply risks remain a watch point.
The research house said VS Industry’s available capacity also gives it room to secure new programmes and diversify beyond consumer electronics over the longer term.