PETALING JAYA: TT Vision Holdings Bhd
is expected to post growth in earnings in its second quarter ended June 30, 2024 (2Q24) driven by increased order deliveries and a robust order backlog, according to Phillip Capital Research.
It expects the company, which develops and manufactures machine vision equipment, to report higher sequential earnings in 2Q24, with its plant utilisation rising to 80% from 70% in 1Q24.
This is important as the company has a RM67mil order book, which provides earnings visibility until 1Q25.
Phillip Capital Research also noted that it had secured RM10mil in new orders in 2Q24 across the solar, optoelectronics and semiconductor segments.
“We expect stronger earnings momentum in the second half of 2024, bolstered by the solar and semiconductor sectors due to ongoing capital expenditure by customers to adopt new technologies and expand their operations,” the research house noted.
It added that TT Vision has completed the pilot phase of its automated X-ray inspection equipment project and has commenced small-scale production for an automotive customer.
“We believe this could be a rerating catalyst and would present opportunities,” it added.
In March, TT Vision tied up with Autowell (Singapore) Pte Ltd, a wholly-owned subsidiary of China-listed Wuxi Autowell Technology Co Ltd, to establish a new manufacturing hub catering to the overseas solar energy markets.
