[%NeEH%] 
Research by HLIB
BUY – TP RM1.42

" New order win in Philippines”

VSI announced that its wholly owned subsidiary, VS Philippines (VSIP) has entered a lease agreement dated 14 Aug 2024 with ALogis Artico for the lease of factory building located at ALogis Sto. Tomas, Light Industry and Science Park III in Batangas Philippines. The factory has a built-up area of 52.7k sqm which will be utilized to fulfil new orders. The new subsidiary also just secured new orders from Customer X to manufacture selected consumer electronics products on box-build assembly basis which includes provision of end-to-end processes. Based on the guidance, this new contract will lift up its top line by RM300m and RM1.2bn in FY25 and FY26, respectively. We are positive on this development as this serves as a testament of the group manufacturing capability. We increase our FY25/FY26 forecasts by +5%/+23%. After earnings adjustment and rolling forward our valuation year to CY25 (from FY25) our TP increases to RM1.42 (from RM1.22) based on unchanged 18x PE multiple. With the outlook looking more favourable for VSI, we upgrade our call to BUY

Analyst:
Syifaa’ Mahsuri Ismail
[%XKvJ%]

$KLSE-VS 
Research by HLIB
BUY – TP RM1.42

" New order win in Philippines”

VSI announced that its wholly owned subsidiary, VS Philippines (VSIP) has entered a lease agreement dated 14 Aug 2024 with ALogis Artico for the lease of factory building located at ALogis Sto. Tomas, Light Industry and Science Park III in Batangas Philippines. The factory has a built-up area of 52.7k sqm which will be utilized to fulfil new orders. The new subsidiary also just secured new orders from Customer X to manufacture selected consumer electronics products on box-build assembly basis which includes provision of end-to-end processes. Based on the guidance, this new contract will lift up its top line by RM300m and RM1.2bn in FY25 and FY26, respectively. We are positive on this development as this serves as a testament of the group manufacturing capability. We increase our FY25/FY26 forecasts by +5%/+23%. After earnings adjustment and rolling forward our valuation year to CY25 (from FY25) our TP increases to RM1.42 (from RM1.22) based on unchanged 18x PE multiple. With the outlook looking more favourable for VSI, we upgrade our call to BUY

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my