KUALA LUMPUR (April 25): ViTrox Corp Bhd saw its net profit nearly halved for the financial quarter ended March 31, 2024 (1QFY2024), primarily due to unfavourable product mix and higher research and development (R&D) expenditures to support the introduction of new products.

Net profit fell 47.8% year-on-year to RM17.23 million from RM33 million, while revenue declined 10.3% to RM119.61 million from RM133.33 million, due to softer demand for its automated board inspection. Earnings per share fell to 1.82 sen from 3.49 sen for the quarter under review.

The most recent figures reveal a continued downward trend, marking the fifth consecutive quarter of year-on-year decline for the group. Previous quarters have shown year-on-year declines of 49.8% in 4QFY2023, 34.6% in 3QFY2023, 26.7% in 2QFY2023, and 34% in 1QFY2023.

Despite the slower than expected recovery of the global economy, ViTrox remains optimistic that the global semiconductor industry will pick up momentum gradually. It opines that the demand from artificial intelligence (AI), telecommunications, and automotive sectors will see sustained growth in the near future.

“The group continues to focus on pursuing new opportunities through product innovation, enhancing customer services and exploring new markets coupled with tight cost control measures to stay competitive and resilient in the global market,” it said.

Previously, ViTrox had proposed 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 945.93 million bonus shares.

At Thursday’s market close, shares of ViTrox were up two sen or 0.26% to RM7.62, valuing the group at RM7.2 billion.