AmInvest Downgrades VITROX Despite 173% Profit Surge, Flags Supply Bottlenecks and Slower Growth
StockTipRatings ·
AmInvestment Bank analyst Paul Yap Ee Xing downgraded ViTrox Corporation to “Hold” from “Buy”, retaining his RM10.25 target price, implying approximately 0.1% downside. Its 9M26 core net profit surged 173% to RM263 million, meeting his expectations, supported by AI-driven inspection demand, operating leverage and a lower effective tax rate.
However, he expects supply constraints and moderating growth to limit further upside surprises.
The book-to-bill ratio eased to 1.1 times from 1.5 times, while management guided for fourth-quarter revenue to decline 5%–17% sequentially. Limited X-ray tube supplies are also constraining automated X-ray inspection equipment production, creating a bottleneck despite continued demand.
Nevertheless, a major hyperscaler that adopted ViTrox’s QX AXI equipment as its standard now contributes approximately 15% of group revenue. Its RM399 million automated board inspection backlog supports revenue visibility into 1H27. Paul left earnings forecasts unchanged, projecting core-profit growth to moderate to approximately 16% in 2027 and 9% in 2028.
As of 9:59 a.m. on November 10, ViTrox Corporation’s share price rose 1.4% to RM10.26.
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The call: AmInvestment on VITROX CORPORATION BERHAD
- Rating
- Hold
- Target price
- RM 10.25
- Upside from current
- 4.3%
Paul Yap Ee Xing's 12-month track record
No.3 of 6 analysts at AmInvestment
- Success rate
- 64%
- Average return
- 10%
- Stocks covered
- 24
Consensus target price for VITROX
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