KUALA LUMPUR (June 15): ViTrox Corporation Bhd (KL:VITROX) is on track for record earnings this year as revenue at the semiconductor equipment maker may surpass RM1 billion for the first time ever, an analyst said.
Demand for machine vision systems and automated board inspection products is strong as ViTrox operates at near-maximum output, according to Maybank Investment Bank in a note. A cloud service provider is contributing to a surge in orders, while ViTrox is in talks with another two more, the house noted.
Growing demand for pioneer status-bearing products is expected to lower its effective tax rate towards single digits from 26% by year end and across 2027-2028, “providing meaningful earnings uplift”, Maybank Investment said.
Maybank Investment raised its target price to RM9.00, the highest among 14 research houses covering ViTrox, keeping its ‘buy’ call. The target price implies potential gain of 25% from its last price of RM7.50 on Monday.
ViTrox mainly manufactures machines used to automatically inspect and detect defects in semiconductor components and printed circuit board assemblies. Its latest flagship products could detect defects in chips mounted and soldered directly onto the surface of a circuit board.
Shares of ViTrox have climbed 88% so far this year, lifting its market capitalisation to a new record high of RM14 billion thanks to a broad rally in technology stocks from a boom in data centres needed to cater to a massive adoption of artificial intelligence and advanced computing.
This year, ViTrox could make a net profit of RM253 million, according to Maybank Investment’s forecasts after adjusting for better order delivery and operating leverage.
“Margins are expected to improve towards the historical peak level range, with management electing to reinvest a portion of gains into talent retention and long-term development,” the house added.