CIMB Securities has issued a cautious outlook for VS Industry Bhd, citing persistent raw material shortages and the impact of tariffs as key headwinds likely to suppress the company's earnings in the near term.
The Malaysian brokerage’s assessment highlights growing pressure on the auto parts manufacturer as it navigates a challenging input cost environment.
The warning comes as broader industry dynamics continue to strain margins for component suppliers.
Rising global oil prices have begun to permeate domestic economies, squeezing profitability for manufacturers that rely heavily on imported raw materials.
This cost inflation is compounded by logistical bottlenecks that are limiting the availability of critical inputs.
The situation mirrors challenges faced by larger players in the automotive supply chain.