KUALA LUMPUR: VS Industry Bhd

recorded a net loss of RM32.91 million in the third quarter ended April 30, 2026 (3Q 2026) from a net profit of RM23.77 million posted in the same quarter last year.

The performance was affected by lower orders from key customers arising from soft consumer sentiments globally, which in turn affected the overall utilisation rate of production capacity coupled with cost optimisation initiatives from customers.

In a filing with Bursa Malaysia today, the leading electronics manufacturing services provider said its revenue also decreased by 11.6 per cent to RM804.00 million in 3Q 2026 from RM909.42 million previously.

For the nine months (9M) ended April 30, 2026, the group also posted to a net loss of RM31.87 million against a net profit of RM69.75 million in 9M 2025, while revenue fell to RM2.65 billion against RM2.93 billion, previously.

It said the Malaysia segment recorded revenue declines of 37.2 per cent and 16.7 per cent for the current and cumulative quarters respectively, while Indonesia posted a lower loss on stronger revenue and the Philippines incurred losses of RM7.0 million and RM35.1 million for the respective periods.

In a statement today, VS Industry managing director Datuk S.Y. Gan said the operating environment remained highly challenging throughout the current financial year, with the global trade policy landscape continuing to evolve in ways that directly affect its business.

"Although headline tariff rates on Malaysian exports to the US have been revised lower following court rulings, the broader trade policy landscape remains uncertain, and recent US sector-specific tariff investigations targeting the electronics industry are keeping uncertainty elevated.

"The global supply chain disruptions arising from the West Asia tension further aggravated the uncertainties, and as a result, order visibility remains limited, with customers continuing to adopt a cautious stance on their procurement and inventory planning,” he added.

He said demand conditions in the group's key end-markets have yet to show meaningful recovery.

"Persistently weak consumer sentiment and spending globally dampened orders from key customers, affecting the utilisation rate of the group's production capacity.

"The resultant under-utilisation of facilities led to fixed costs not being adequately absorbed, and thus weighed on the group's profitability,” he said.

Gan said notwithstanding the prevailing headwinds, the group is cautiously encouraged by early signs of improving order flow from customers heading into the final quarter of the financial year.

"Taking all factors into consideration, the board anticipates the group's performance for FY2026 to be lower than the preceding year,” he said. - Bernama