KUALA LUMPUR (July 24): ViTrox Corp Bhd (KL:VITROX) reported a flat second-quarter net profit, despite a 33.4% increase in revenue, due to a sharp rise in tax provision following the expiration of its pioneer status in mid-June. Quarterly tax expenses tripled to RM10.1 million, from RM3.21 million a year earlier.

The automated test equipment manufacturer noted that its pioneer status for tax exemption — covering the development of intelligent robotic inspection systems with machine-to-machine connectivity and predictive analytics — expired on June 16.

Nevertheless, a new application for tax incentives has been submitted and remains under review by the Malaysian Investment Development Authority.

Net profit for the three months ended June 30, 2025 (2QFY2025) came in at RM28.13 million, compared with RM28.10 million a year earlier.

Revenue for the quarter surged to RM183.04 million, from RM137.2 million in 2QFY2024, with both core businesses, automated board inspection and machine vision system, registering double-digit growth.

For 2QFY2025, the group declared a lower dividend of 0.7 sen per share, compared with 1.1 sen a year ago.

ViTrox’s net profit for the cumulative six months ended June 30, 2025 (1HFY2025) rose 15.4% to RM52.29 million from RM45.33 million a year earlier, as revenue surged 26.2% to RM324.16 million from RM256.81 million in 1HFY2024.

ViTrox remains cautiously optimistic about benefiting from the anticipated recovery in demand. The group emphasised that ongoing, disciplined investment in research and development will help maintain technological relevance.

However, it acknowledged that exchange-rate volatility, higher reciprocal tariffs from the US, and persistent component shortages may weigh on near-term margins. Accordingly, it intends to manage costs prudently while pursuing emerging growth opportunities.

ViTrox shares were up four sen or 1.07% to close at RM3.79 on Thursday, giving the group a market capitalisation of RM7.18 billion. Year-to-date, the stock has declined 5.5%.