Tag Archives: VSI

Additional Listing Announcement

1. Details of Corporate Proposal

Involve issuance of new type/class of securities ? No
Types of corporate proposal ESOS
Details of corporate proposal EMPLOYEES’ SHARE OPTION SCHEME
No. of shares issued under this corporate proposal 45,000
Issue price per share ($$) Malaysian Ringgit (MYR)   0.7000
Par Value ($$) Malaysian Ringgit (MYR)   0.200
Latest issued and paid up share capital after the above corporate proposal in the following
Units 1,176,066,330
Currency Malaysian Ringgit (MYR) 235,213,266.000
Listing Date 09 Sep 2016

Additional Listing Announcement

1. Details of Corporate Proposal

Involve issuance of new type/class of securities ? No
Types of corporate proposal ESOS
Details of corporate proposal EMPLOYEES’ SHARE OPTION SCHEME
No. of shares issued under this corporate proposal 30,000
Issue price per share ($$) Malaysian Ringgit (MYR)   0.7000
Par Value ($$) Malaysian Ringgit (MYR)   0.200
Latest issued and paid up share capital after the above corporate proposal in the following
Units 1,176,021,330
Currency Malaysian Ringgit (MYR) 235,204,266.000
Listing Date 05 Sep 2016

Additional Listing Announcement

1. Details of Corporate Proposal

Involve issuance of new type/class of securities ? No
Types of corporate proposal ESOS
Details of corporate proposal EMPLOYEES’ SHARE OPTION SCHEME
No. of shares issued under this corporate proposal 148,000
Issue price per share ($$) Malaysian Ringgit (MYR)   0.7000
Par Value ($$) Malaysian Ringgit (MYR)   0.200
Latest issued and paid up share capital after the above corporate proposal in the following
Units 1,175,991,330
Currency Malaysian Ringgit (MYR) 235,198,266.000
Listing Date 23 Aug 2016

Changes in Director’s Interest

Particulars of Director

Name CHONG CHIN SIONG
Descriptions(Class & nominal value) Ordinary share of RM0.20 each

Details of changes

Currency: Malaysian Ringgit (MYR)

Type of transaction
Date of change
No of securities
Price Transacted ($$)
Disposed
19/08/2016
130,000
1.480

 

Circumstances by reason of which change has occurred
Disposal
Nature of interest
Direct
Consideration (if any)
-

Total no of securities after change

Direct (units) 500,000
Direct (%) 0.043
Indirect/deemed interest (units) 225,000
Indirect/deemed interest (%) 0.019
Date of notice 22/08/2016

 

Remarks :
The percentage is computed based on the total number of shares in issue of 1,175,991,330 and after deducting a total of 5,916,680 shares bought back and retained as treasury shares as at 22 August 2016. This announcement serve as an announcement pursuant to the Paragraph 14.09(a) of the Main Market Listing Requirements for dealings outside closed period. The above disposal represents 0.011% of the issued ordinary shares of the Company.

[SunBiz] VSI bags US$82 million ODM contract manufacturing job

PETALING JAYA: V.S. Industry Bhd has bagged its first full original design manufacturing (ODM) model of coffee brewer contract manufacturing job worth US$82 million (RM327.2 million) for one of its existing key customers.

Under the contract, VSI will design and manufacture the new model of coffee brewer, while its customer engages in purchasing a minimum quantity over the next three years, amounting to US$82 million.

VSI expects to begin mass production in January 2017, and to see contribution to earnings from financial year ending July 31, 2017.

VSI has been granted exclusive manufacturing rights for the first 18 months.

“This is a significant milestone for us. Our client is a well-known brand of personal beverage system company in North America with an annual turnover of a few billion dollars. To have us fully design a coffee brewer for them demonstrates the level of confidence and trust they have in our capability and quality,” VSI managing director Datuk S.Y. Gan said in a statement yesterday.

“At VSI, we are increasingly moving up the value chain to be the ODM producer instead of just being an original equipment manufacturer producer. This helps to forge a stronger bond with our customers. In fact, our highly capable research and development team now undertakes designing, prototyping and testing work for a number of our customers. In return, we are awarded the manufacturing orders, with some on an exclusive basis. So it’s a win-win partnership for both parties,” he added.

Based on the latest ranking by the Manufacturing Market Insider, a leading publication on Electronics Manufacturing Services (EMS), VSI ranks 4th in the Asean region by revenue, and is the largest EMS provider in Malaysia.

[StarBiz] VS Industry clinches US$82mil deal to make new coffee brewer

PETALING JAYA: Electronic products maker VS Industry Bhd has entered into a contract manufacturing agreement with an existing major customer to design and manufacture a new model of coffee brewer for a minimum contract value of US$82mil (RM328mil) within a period of three years.

In a filing to Bursa Malaysia, VS Industry said the coffee brewer was the first fully designed and engineered model by VS Industry for the customer.

The company has been granted exclusivity in manufacturing this model for 18 months.

“The production is scheduled to commence from January 2017. The board expects the contract to contribute positively to the group’s financial year ending July 31, 2017,” said VS Industry.

Shares of VS Industry have been on a roll over the last one month.

Yesterday, it closed down one sen to RM1.43. Nonetheless, it had risen 11 sen over the last one month.

Its warrants have nearly doubled since the beginning of July.

It touched its year’s low of 19.5 sen on July 8, and has since been skyrocketing to close yesterday at 37.5 sen.

VS Industry managing director Datuk S Y Gan said the deal marked a significant milestone for the company.

“Our client is a well-known brand of personal beverage system company in North America with an annual turnover of a few billion US dollars.

To have us fully design a coffee brewer for them demonstrates the level of confidence and trust they have in our capability and quality.

“At VS Industry, we are increasingly moving up the value chain to be an original design manufacturer producer instead of just being an original equipment manufacturer producer.

“This helps to forge a stronger bond with our customers.

“In fact, our highly capable research and development team now undertakes designing, prototyping and testing work for a number of our customers.

In return, we are awarded the manufacturing orders, and some on exclusive basis.

“So, it’s a win-win partnership for both parties.” Gan elaborated.

Meanwhile, this new contract comes on the heels of its RM100mil contract from Diamond water filtration system producer NEP Holdings (M) Bhd three weeks ago.

On July 25, VS Industry secured an RM100mil contract to manufacture water filters for NEP Holdings, a company in which it is buying a 20% stake for RM60mil cash.

The contract to manufacture the Diamond branded water filtration system is for 12 months.

NEP Holdings had also given a minimum profit guarantee of RM40mil for the financial year ending June 30, 2017.

VS Industry is one of the world’s top-50 electronics manufacturing services corporations, providing integrated manufacturing solutions to multinational corporations mainly from Europe, the United States and Japan.

It has advanced manufacturing facilities in Malaysia, Indonesia, China and Vietnam.

Its comprehensive services include high-precision printed circuit board assembly, plastic injection moulding and sub and full assembly, as well as tool design and fabrication.

[StarBiz] VS Industry bags RM326mil deal to make coffee brewers

By M. Hafidz Mahpar

KUALA LUMPUR: Electronics manufacturing services (EMS) giant VS Industry Bhd has secured a three-year contract worth at least US$82mil (RM326.3mil) to design and make a new model of coffee brewers.

The company said in a statement to Bursa Malaysia that the new coffee brewer was the first fully designed model by its unit VS Plus Sdn Bhd for the existing customer, which was not named, and thus VS Plus had the exclusive manufacturing rights for the first 18 months.

Production for the customer — described by VS Industry as “a well-known brand of personal beverage system company in North America with an annual turnover of a few billion US dollars” — is scheduled to begin from January 2017.

“To have us fully design a coffee brewer for them demonstrates the level of confidence and trust they have in our capability and quality,” VS industry managing director Datuk SY Gan said.

“At VS Industry, we are increasingly moving up the value chain to be the ODM (original design manufacturer) producer instead of just being an OEM (original equipment manufacturer) producer. This helps to forge a stronger bond with our customers.”

The customer has undertaken to purchase minimum orders of US$82mil over the next three years, said VS Industry, which is believed to be the largest EMS provider in Malaysia.

This latest deal came less than a month since VS Industry acquired a 20% stake in NEP Holdings (M) Bhd for RM60mil, which gave it RM100mil worth of annual committed orders to make Diamond water filters.

VS Industry shares shed 1 sen to close at RM1.43 on Tuesday, with 4.02 million shares traded.

[Malaysian Reserve] VS Industry Buys 20% Stake In Water Filtration Firm

R Kamalavacini

JF APEX Securities Bhd maintained a ‘Buy’ call on electronic products maker VS Indust ry Bhd with an unchanged target price of RM1.50 following its move to purchase a 20% stake in the Diamond water filtration system producer NEP Holdings (M) Bhd for RM60 million cash.

“We are positive on the share acquisition as we believe VS could reap the benefits of synergy over a mediumto long-term as NEP now becomes an ODM (original design manufacturing) customer to VS.

“We are optimistic NEP can achieve its sales target in China and hence benefitting VS as NEP has appointed the established Haier Group to sell its water filter products, aiming for high-end markets in first-tier cities,” said the firm in its latest research recently.

VS Indust ry recent ly announced it has entered into a subscription agreement with NEP and Lim Chang Huat to acquire up to 20% stake in NEP.

“The acquisition to be executed in two tranches with 10% stake for each tranche worth RM30 million.

As of to date, the first tranche has been completed while the second tranche is to be completed within six months.

The deals see Lim providing profit guarantee of RM40 million for NEP.

“Also, Lim shall reimburse VS in the event of shortfall in profit,” JF Apex noted.

Established since 1995, NEP has built up a wide network of 3,000 dealers. It is principally involved in assembling, wholesaling, distributing, trading of water filtration systems and healthcare related products, and investment holding.

The brokerage expects VS Industry’s earnings going forward to increase moderately.

“In respect of manufacturing revenue, VS would expect RM200 million manufacturing contract from NEP for the first two years. Assuming an average of RM100 million order per year and net margin of 5%, the company can look forward to yearly net earnings of RM5 million in the financial year 2017 (FY17) onwards,” it noted.

Overall, JF Apex envisages the manufacturing revenue and associate profit to lift VS’ net profit by 5%-6% for FY17 and FY18.

“We favour VS for its ability to provide fully integrated assembly services for electronics manufacturing services ranging from the plastic injection moulding, sub and full assembly, tooling to high value added work scope such as production of printed circuit board as well as its capability of securing more orders from existing client, namely Dyson. Attractive dividend yield of over 4% is also an added advantage for VS,” the Kajang-based brokerage noted.