KUALA LUMPUR: VS Industry Bhd returned to profitability in the first quarter ended Oct 31, 2025, lifted by seasonally stronger sales and a reversal of impairment losses on trade receivables.
The company posted a net profit of RM30.63 million compared with a net loss of RM33.04 million in the previous quarter.
Operating profit improved four per cent to RM50.63 million, while revenue slipped 2.9 per cent to RM1.08 billion from RM1.11 billion, its filing to Bursa Malaysia showed.
VS Industry declared a first interim dividend of 0.4 sen per share, unchanged from last year, payable on Jan 28, 2026.
VS Industry managing director Datuk S.Y. Gan said the global operating landscape remains challenging with uncertainties in the macroeconomic environment continuing to weigh on consumer sentiment.
Nonetheless, he said the recent interest rate cut in the United States offers some relief and may support a gradual improvement in demand conditions over the coming quarters.
"Against this backdrop, the group's order flow has picked up in the first quarter of the current fiscal year, with several new models from existing customers having entered mass production recently.
"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.
"These developments highlight our strong execution capabilities and ability to capture new opportunities," he said in a statement.
Gan said in the Philippines, utilisation rates continue to improve as additional upstream capabilities including plastic injection moulding and printed circuit board (PCB) assembly, are gradually added to the plant to further enhance cost efficiency and vertical integration.
He added that being an export-oriented group, it continues to monitor the movement of the ringgit against the US dollar.
"The impact from the strengthening of ringgit is expected to be manageable due to natural hedges from utilising US dollar-denominated proceeds to fund raw material and component purchases in US dollar.
"In addition, a portion of customer billings are also denominated in ringgit, further mitigating foreign exchange exposure," he said.
VS Industry is cautiously optimistic of delivering a better performance in FY26, supported by customer order pipeline, lean operations and a solid balance sheet.
The company said its financial position remained healthy with a net cash position and gross cash holdings of RM752.6 million, backed by net assets of RM0.56 sen per share as at end-October 2025.