PETALING JAYA: Vitrox Corp Bhd
has a positive outlook with growth primarily driven by the global artificial intelligence (AI) infrastructure surge, strategic capacity expansion plans and expansion into the China market.
And with the tech sector decoupling from geopolitical tension, ViTrox could benefit from the massive US$500bil capital expenditure (capex) spending announced by hyperscalers.
Apex Securities said AI drives 50% of ViTrox order book. Key growth drivers include AI server manufacturing, advanced packaging and data centre buildouts.
The research house expects the massive capex spending to drive demand for AI servers, which offers multi-year demand visibility. Humanoid robotics production is also set to commence soon, adding a new vertical for ViTrox.
After posting a strong first quarter of financial year 2026 (1Q26), ViTrox has guided for 2Q26 revenue of RM252mil to RM274mil, implying up to 50% year-on-year growth, according to CIMB Securities.
“The company remains confident in its FY26 outlook, underpinned by a strong order funnel across its machine vision system tray (MVS‑T) and automated board inspection segments,” the research outfit stated in its latest report on the Penang-based tech firm.
It added ViTrox has also successfully qualified a leading Tier-1 foundry to supply vision modules for cooling technologies supporting AI data centre infrastructure.
ViTrox’s total purchase orders reached a record RM332.4mil at the end March with the book‑to‑bill ratio rising to 1.3-times.
The company also indicated that MVS‑T capacity is fully booked until the end of 3Q26.
“Although ongoing global supply chain and vendor capacity constraints may result in a portion of existing orders being carried into 3Q26, ViTrox has taken proactive measures by securing a six‑month inventory buffer in 1Q26, which should help mitigate supply risks and support order fulfilment,” CIMB Securities said.
The research house noted the group expects its FY26 effective tax rate to trend meaningfully below the 1Q26 level, providing incremental earnings uplift into the second half of 2026.
Apex Securities viewed the current capacity constraints as a positive signal rather than a structural concern – reflecting the strength of underlying demand rather than operational weakness.
“The supply constrained environment affords ViTrox bargaining power on pricing and customer commitments, supporting both average selling prices expansion and longer-term order visibility,” it said.
Apex Securities has maintained a “buy” rating on ViTrox with a target price (TP) of RM7.04 a share with the valuation based on 46-times FY27 earnings per share (EPS) of 15.3 sen, reflecting the company’s rising exposure to high-growth segments like AI server manufacturing.
CIMB Securities also reiterated a “buy” call on the stock but raised its TP to RM6.80 a share (RM5.90 previously).
