VS Industry Adds Revenue Stream

VS Industry Bhd (VSI) net profit decreased 11.2% YoY to RM118m in FY16, despite increased revenue of 12.3% YoY. UOB Kay Hian attributes this largely due to margin erosion and forex impact from the strengthening of the Ringgit in that period. Better earnings contribution is expected from its 20% stake in NEP Holdings known for its water filtration business, adding a new revenue stream of approx RM100 p.a. to the group.