KUALA LUMPUR (Feb 22): ViTrox Corp Bhd's profit for its fourth quarter of FY2023 halved year-on-year due to an unfavourable product mix and softer demand from its customers amid a slower global economy, but the automated test equipment maker remains optimistic on its outlook based on sustained demand growth from artificial intelligence, telecommunications and automotive sectors.

Its quarterly profit for the three months ended Dec 31, 2023 (4QFY2023) dropped to RM24.4 million from RM48.6 million in in 4QFY2022, with earnings per share dropping to 2.58 sen from 5.14 sen, as revenue fell 25.1% to RM142.23 million from RM190 million.

For the full FY2023, the group's net profit dropped 36.1% to RM128.3 million from RM200.82 million in FY2022, as revenue retreated 23.4% to RM574.92 million from RM750.25 million, which it blamed on the market slowdown that affected demand for both its automated board inspection services and machine vision system business.

Earnings per share for FY2023 fell to 13.58 sen from 21.26 sen in FY2022.

Nevertheless, the group anticipates a gradual recovery in the first half of 2024, and said it has continued to solidify its foundation by strengthening its operation, introducing new products and expanding its market.

The group also plans to reward shareholders by issuing one bonus share for every existing share of the group held.

The plan, which it expects to complete by the second quarter of 2024 — subject to all approvals being obtained — would entail the issuance of up to 946.9 million bonus shares.

At Thursday’s market close, Vitrox shares closed 43 sen or 5.96% higher at RM7.64, giving the group a market capitalisation of RM7.22 billion.