VS Industry Draws Mixed Analyst Calls Amid Slow Order Recovery

KUALA LUMPUR, June 22 (Bernama) -- Analysts are taking a mixed stance on VS Industry Bhd following the company's weaker corporate results for the nine-month financial year 2026 (9MFY2026). 

RHB Investment Bank Bhd (RHB IB), which recommended a 'buy' call, said the leading integrated electronics manufacturing services provider's earnings are expected to recover gradually from the fourth quarter (4Q) of FY2026 onwards, supported by stronger seasonality and the ramp-up of new programmes from key customers. 

VS Industry's healthy balance sheet position is also poised to capture market share amid a period of industry consolidation, said RHB IB. 

Meanwhile, Hong Leong Investment Bank (HLIB), in its note, remains sceptical about the pace of recovery in Customer X's orders amid still-soft consumer demand. 

It noted that recent channel checks with peer SKP Resources Bhd suggested Customer X’s order pickup remains slow, with May 2026 deliveries being pushed back — potentially reflecting weaker demand amid the Iran war.

"We highlight that Customer X’s order flow remains the key swing factor for VS Industry’s earnings, particularly for its Malaysia segment," said HLIB. 

Another investment bank, Public Investment Bank Bhd, meanwhile, maintained its cautious and 'neutral' stance on VS Industry's near-term outlook, as geopolitical and trade uncertainties linger. 

"While the US-Iran ceasefire marks a positive step, its fragility means inflationary pressures and consumer caution are likely to persist in the near term, with confidence taking time to rebuild. 

"As such, we expect FY2026 earnings to remain under pressure on a year-on-year basis," it said. 

As at 10.26 am, VS Industry, which is among the actively traded stocks, saw its share price trade flat at 19.6 sen, with 28.58 million shares traded. 

-- BERNAMA