3MFY22 results were below expectations and as such, we have trimmed our FY22-24E earnings forecasts by 12%/7%/5%. Following the recent industry-wide sell down, we opine that the risk-reward ratio has turned favourable and we upgrade VSI to a BUY with a lower TP of MYR1.73. With the sustained resumption of operations at full capacity, mitigated contagion risk surrounding industry labour issues, and the potential volume loading from existing/new customers, we expect VSI to fare better in FY22/23E.