Higher R&D expenses likely to impact Vitrox near-term earnings

Vitrox said the group is confident of achieving steady growth and improvements in the semiconductor back-end sector.

PETALING JAYA: CGS International Research (CGSI Research) has downgraded Vitrox Corp Bhd to “reduce” from “hold” previously, citing challenging operating conditions ahead.

The research house pointed out that Vitrox is trading at a forecast 2025 price-to-earnings (PE) ratio of 40.3 times, well above its eight-year historical average of 32.7 times and local peers’ 30.1 times.