CIMB Investment Bank Bhd (CIMB Securities) and Hong Leong Investment Bank Bhd (HLIB) have both affirmed a positive outlook on ViTrox Corp Bhd.
The house has maintained its BUY recommendation with a target price of RM5.90, while HLIB has upgraded the stock to BUY from Hold with an increased target price of RM6.00.
Analysts attribute this to the company’s strong earnings momentum, AI-driven demand, and improved margins, which are collectively supporting a robust growth trajectory.
CIMB Securities said ViTrox’s 1Q26 results met expectations, accounting for 28% of its forecast and 27% of consensus, with core net profit surging 2.1 times year-on-year to RM52.9 million driven by higher equipment deliveries and a more favourable product mix.
It added that revenue jumped 89% year-on-year to RM267 million, supported by recovery in semiconductor demand and stronger shipments of inspection systems.
HLIB highlighted an even stronger earnings beat, with 1Q26 core profit of RM60.8 million exceeding expectations at 29% of full-year forecasts, supported by margin expansion, higher average selling prices and cost optimisation.
It noted that results were further boosted by tax incentives from the Malaysian Investment Development Authority, which lowered the effective tax rate.
Both research houses pointed to a resilient growth outlook into FY27, underpinned by rising demand linked to AI infrastructure, data centre expansion and electric vehicle applications.
CIMB Securities said the upcoming QX1 Series launch would support the next product refresh cycle while HLIB said the new product pipeline and sustained orderbook momentum reinforce pricing power in a tight supply environment for semiconductor equipment.
ViTrox is also expected to benefit from a projected 26.3% rise in global semiconductor sales in 2026, with stronger contributions from logic and memory segments driven by hyperscale data centres and generative AI adoption.
CIMB Securities maintained its FY25 to FY27 core earnings growth forecast of 31% compound annual growth while HLIB raised its earnings estimates by up to 29%, reflecting stronger shipment and ASP assumptions.
Both houses cited risks including semiconductor cyclicality, forex volatility and competition but said near-term visibility remains strong.
As of 10.57 am, the stock price rose 5.82%, to RM5.27.
