PETALING JAYA: Analysts generally expect Vitrox Corp Bhd
to post stronger earnings moving forward, given its solid fundamentals and improved book-to-bill ratio.
In a report, Maybank Investment Bank Research (Maybank IB) said it expects sustained growth for the semiconductor equipment group going well into next year.
“We are more positive on ViTrox’s outlook ahead, with management guiding for stronger growth as tariff headwinds ease and continued customer expansion, which is driving sustained demand across back-end semiconductor supply chains,” the research house added.
It said that the upbeat tone from ViTrox’s management during a briefing on the results for the second quarter of this year (2Q25) proved well-founded and has been reaffirmed by the update for 3Q25, with optimism extending into 4Q25 and beyond.
“This confidence is underpinned by sustained demand from artificial intelligence (AI) and automotive-related technologies, primarily driven by outsourced semiconductor assembly and test customers,” said Maybank IB.
ViTrox also anticipates incremental growth from customers in the electronics manufacturing services sector over the next three to six months, as they ramp up production to align with new AI-driven applications and next-generation electric vehicle models, replacing legacy technologies while expanding capacity in emerging segments.
The research house also said the approval of ViTrox’s new pioneer tax incentive remains pending, with management expecting confirmation by the end of this year, which would provide a lift for profit after tax and minority interest next year.
However, possible material shortages from suppliers and the need for expedited shipments, driven by stronger-than-expected demand, could offset near-term earnings growth potential.
Maybank IB, which maintained a “hold” call on ViTrox, said: “All in, we raise our earnings forecasts for this year to 2027 by between 8% and 18%, and lift our target price to RM4.84 from RM4.11 previously.”
Apex Research in a note to clients said it believes ViTrox is on the cusp of strong earnings upcycle over the next one to two years, driven by its expanding new product introduction pipeline that should boost sales volumes and average selling prices across the automated board inspection and machine vision system divisions.
Its latest AI-enabled inspection platforms should cement its technological edge and position it to ride the semiconductor and electronics manufacturing services capital expenditure upcycle, especially in advanced packaging and AI server manufacturing.
Apex Research noted that the group’s book-to-bill ratio has improved to 1.2 times as of the end of 3Q25, signalling sustained demand momentum in the coming quarter.
“As for the tax rate, we expect the pioneer status to be successfully renewed by the end of this year, which should lower the group’s effective tax rate next year as it gradually phases out its legacy models,” the brokerage added.
The research house has kept a “buy” call on the stock with an unchanged target price of RM5.
It pointed out the stock is poised for a re-rating on the back of rising exposure to high-growth segments such as high-performance computing and AI server manufacturing and advanced semiconductor packaging, and strong double-digit earnings growth over its forecast horizon, supported by the semiconductor upcycle to meet AI-driven demand.
CIMB Research, meanwhile, said that it has maintained a “hold” rating on ViTrox with an unchanged target price of RM4.60, in line with the Malaysian automated test equipment sector’s five-year mean.
The reseach house said its valuation reflects an optimistic sector outlook, underpinned by ViTrox’s solid AI-related order pipeline and increasing regional diversification, both of which continue to support the company’s earnings visibility.
