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VS allocates RM200 mln capex for FY21

VS allocates RM200 mln capex for FY21

08 Jan 2021

V.S. Industry Bhd (VS), an electronics manufacturing services provider, has set aside RM200 million in capital expenditure for financial year 2021 (FY21) to expand and enhance its capacity and capabilities.

Managing director Datuk SY Gan said despite 2020 being an arduous year for the company in the face of unprecedented market challenges stemming from the Covid-19 pandemic and ongoing macroeconomic issues, it had managed to secure two new customers from the US.

“Additionally, we also expect the robust order flow from our existing customers to sustain into the near future. With this and the new customers secured, our existing capacity is projected to be fully filled by 2021.

“Therefore, we have earmarked approximately RM200 million for capital expenditure for FY21 to expand and enhance our capacity and capabilities,” he said in a statement after VS’ 38th annual general meeting, yesterday.

“We are striving to deliver an improved performance in the new fiscal year having posted our best-ever quarterly net profit of RM66.7 million in the first quarter (1QFY21) and supported by the rebound in global and local economies,” he added.

As part of its capacity expansion plan, VS on Oct 14, 2020 entered into Sale and Purchase and Construction Agreements with Ipark Development Sdn Bhd, a subsidiary of AME Elite Consortium Bhd, to acquire six pieces of land with industrial buildings in Senai, Johor for a total consideration of RM98.8 million. The acquisition is expected to be completed by June 30, 2021.

Source: Bernama

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