=MARKET BUZZ: Malaysia's V.S. Industry Rebounds; UOB Expects Weak 3Q, Keeps Buy
KUALA LUMPUR (Jun 14) -- V.S. Industry +3.1% at MYR1.68, rebounds from yesterday's 9.4% losses. Company's 3Q results, scheduled to be announced later this month, expected to be weaker on-year given a high base in 3QFY17, says UOB Kay Hian in investor note. House keeps Buy call and target price of MYR2.30, flags production of new products for its key customers will start in 4QFY18. "We note that V.S. Industry will pass on higher costs to customers from Jun 18. Hence, 4QFY18 should see a strong recovery," says house in investor note. Adds, company's new capacities will be coming on stream from mid-18 over the next three to five years; keeps FY18-20 net profit forecasts at MYR191 million, MYR297 million and MYR347 million, respectively.
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