SENAI: Integrated electronic manufacturing services (EMS) provider VS Industry Bhd (VSI) plans to add more international brands to its portfolio of clients with the opening of its newest production facility here.
“Keurig Inc marks our first American-based customer. With Keurig, we expect to have more leading international brands as our customers in the future, especially from the US,” its managing director Gan Sem Yam told The Edge Financial Daily after the official opening of the plant in Johor yesterday.
The RM30 million plant with a total built-up area of 20,695 sq m is dedicated to producing single-cup coffee brewers and accessories for Keurig. Keurig is the market leader for coffee makers in North America, according to its president Michelle V Stacy, who attended the opening.
Gan said VSI will provide its full suite of EMS services to Keurig ranging from mould fabrication, printed circuit board assembly, packaging and logistics.
Keurig, a wholly owned subsidiary of Nasdaq-listed Green Mountain Coffee Roasters Inc, is expected to account for 20% to 30% of VSI’s revenue by 2013, Gan said.
He said 60% of VSI’s revenue in FY11 came from its main customer Dyson Ltd, a British company known for its vacuum cleaners, hand driers and bladeless fans.
Gan said production from the new plant will begin immediately with a target to export the products to North America in the first quarter of 2012. Gan added that the plant is expected to reach its full annual production capacity of six million units in two years.
Stacy said Keurig is hoping to produce at least two models of the Keurig coffee brewers in VSI’s plant.
VSI is Keurig’s first EMS partner in Southeast Asia. Prior to VSI, Keurig manufactured its products in China, she said.
VSI is a leading EMS provider in consumer household electronics with extensive manufacturing services ranging from plastic injection mould design and finishing processes to printed circuit board production.
For FY11 ended July 31, VSI reported a 28.6% increase in revenue of RM1.03 billion from RM800.17 million the previous year, while its net profit increased to RM27.72 million from RM24.29 million a year ago. VSI attributed the improved year-on-year performance to better sales.
The company has set a dividend policy of 40%. In March, VSI announced to Bursa Malaysia that it has been paying dividends since its listing in 1998, with a payout ratio ranging from 20% to 60% of its annual net profit. It said on average, it has been paying more than 40% of net profit.
During FY11, VSI paid out total dividend of nine sen, which translates into a net dividend payout of 6.3% based on its closing price of RM1.42 yesterday. Over the last year, its stock has fallen 33.64% and traded between a year-high of RM2.23 and low of RM1.21.
This article appeared in The Edge Financial Daily, November 16, 2011.
“Keurig Inc marks our first American-based customer. With Keurig, we expect to have more leading international brands as our customers in the future, especially from the US,” its managing director Gan Sem Yam told The Edge Financial Daily after the official opening of the plant in Johor yesterday.
The RM30 million plant with a total built-up area of 20,695 sq m is dedicated to producing single-cup coffee brewers and accessories for Keurig. Keurig is the market leader for coffee makers in North America, according to its president Michelle V Stacy, who attended the opening.
Gan said VSI will provide its full suite of EMS services to Keurig ranging from mould fabrication, printed circuit board assembly, packaging and logistics.
Keurig, a wholly owned subsidiary of Nasdaq-listed Green Mountain Coffee Roasters Inc, is expected to account for 20% to 30% of VSI’s revenue by 2013, Gan said.
He said 60% of VSI’s revenue in FY11 came from its main customer Dyson Ltd, a British company known for its vacuum cleaners, hand driers and bladeless fans.
(From left) VS Industry Bhd Beh Kim Ling, Stacy and Johor Menteri Besar Datuk Abdul Ghani Othman looking at the Keurig coffee brewer.
Gan said production from the new plant will begin immediately with a target to export the products to North America in the first quarter of 2012. Gan added that the plant is expected to reach its full annual production capacity of six million units in two years.
Stacy said Keurig is hoping to produce at least two models of the Keurig coffee brewers in VSI’s plant.
VSI is Keurig’s first EMS partner in Southeast Asia. Prior to VSI, Keurig manufactured its products in China, she said.
VSI is a leading EMS provider in consumer household electronics with extensive manufacturing services ranging from plastic injection mould design and finishing processes to printed circuit board production.
For FY11 ended July 31, VSI reported a 28.6% increase in revenue of RM1.03 billion from RM800.17 million the previous year, while its net profit increased to RM27.72 million from RM24.29 million a year ago. VSI attributed the improved year-on-year performance to better sales.
The company has set a dividend policy of 40%. In March, VSI announced to Bursa Malaysia that it has been paying dividends since its listing in 1998, with a payout ratio ranging from 20% to 60% of its annual net profit. It said on average, it has been paying more than 40% of net profit.
During FY11, VSI paid out total dividend of nine sen, which translates into a net dividend payout of 6.3% based on its closing price of RM1.42 yesterday. Over the last year, its stock has fallen 33.64% and traded between a year-high of RM2.23 and low of RM1.21.
This article appeared in The Edge Financial Daily, November 16, 2011.
