KUALA LUMPUR (Sept 25): Sustained electrical and electronics (E&E) sector interest has put ViTrox Corp Bhd (KL:VITROX) in an upcycle that BIMB Securities Research says is more sustainable than its Covid-era boom, leaving room to grow — even after the stock soared 147% year to date.

"The Covid upcycle was largely driven by consumer electronics demand, which subsequently normalised as end-market demand softened. 

"In contrast, the current upcycle is led primarily by enterprise and hyperscaler investments in AI and data-centre infrastructure, which are generally supported by stronger balance sheets, longer investment horizons and committed capex plans," said BIMB in a note on Friday.

ViTrox produces automated vision technology used for monitoring and maintaining semiconductor components and integrated circuits.

“Given the healthy order backlog, favourable demand environment and sustainable capex deployment across the AI ecosystem, we believe the current earnings cycle still has room to run,” said the research house, which maintained its “hold” call and raised its target price to RM10.30 from RM8.48.

It added that August’s export data further reinforces its optimism, with Malaysia’s E&E exports rising 66.5% year-over-year to RM92.5 billion in August 2026, reflecting strong demand from AI, cloud computing and data centre investments.

The company was trading at RM10.08 at 10.30am on Friday. Its share price saw a significant rise, from a 52-week low of RM3.70 to a 52-week high of RM10.

BIMB noted that this upcycle is reminiscent of its rise during the Covid-19 pandemic, but the longer-term investments found in AI and data centres will lead to more sustainable growth.

“Although earnings momentum remains strong and industry fundamentals are supportive, much of the near-term growth optimism appears reflected in the recent share price appreciation, leaving limited upside potential,” said BIMB.