VS Industry: Dragged by Philippines Operations

VS Industry Bhd (VSI) is navigating significant losses at its Philippines operations added with supply chain disruptions due to geopolitical tensions.

“Post-briefing, we understand that VS continues to navigate a challenging operating environment, pressured by softening global consumer sentiment and supply chain disruptions arising from heightened geopolitical tensions,” says Public Investment Bank.

Philippines Operations

It says the group’s high customer concentration risk has further amplified its vulnerability under the current global uncertainty.

“We expect losses to narrow in 3QFY26, supported by the gradual resumption of Philippines operations as raw material supply stabilises. In light of the more challenging outlook, we revise our FY26-27F earnings forecasts downward by an average of 78%, reflecting higher cost assumptions.

“We maintain our Neutral call with a lower TP of RM0.17, based on 17x PE CY27F EPS.”

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