V.S. Industry Berhad concluded its 42nd Annual General Meeting with the Managing Director Datuk S.Y. Gan noting that prospects are good moving into the the new financial year (FY25).
He said this was underpinned by the healthy demand outlook from the group's existing customers and new manufacturing facility in the Philippines. The uptrend in orders is sustaining and further supported by upcoming new product launches from key customers. The recent interest rate cuts in the United States he said also provide a welcome boost to businesses and consumer sentiment.
"On the other hand, we continue to be excited by our venture in the Philippines given the potential. The Group has secured new orders with an expected aggregate value of RM1.5 billion over the next two years. Renovation of our new plant is at its tail end, and we target to start production in the coming months."
"Our optimism is also reflected in our capital expenditure ("capex") strategy. We have allocated around RM150 million in capex for FY25 with the bulk of it earmarked for the facility in the Philippines, acquisition of new factory in Indonesia as well as maintenance capex for our Malaysia operations. These investments enable us to strengthen our foundation as we advance towards new horizons for the Group," Datuk S.Y. Gan further added.
VS continued with its quarterly dividend payout practice in FY24. The total dividend per share amounted to 2.2 sen or RM84.8 million. This translates to a 43.4% payout based on FY24 profit after tax and non-controlling interest of RM195.5 million after excluding the one-off non-cash accounting net gain, exceeding the Group's dividend policy of a 40% net profit payout.