CIMB Investment Bank Bhd (CIMB Securities) maintained its BUY call on ViTrox Corp Bhd with an unchanged target price of RM10, citing record orders and accelerating demand for semiconductor equipment linked to artificial intelligence infrastructure.
CIMB Securities said ViTrox’s 3QFY26F revenue guidance of RM360 million to RM402 million points to growth of up to 76% year-on-year, supported by a record RM562 million in purchase orders at end-June. This lifted its book-to-bill ratio to 1.5 times, the strongest quarterly level since 2018.
The research house said more than RM400 million of automated board inspection equipment backlog is scheduled for delivery over the next six months, driven by cloud service providers ramping up AI data centre investments. However, production remains constrained by shortages of X-ray tubes and flat-panel display components.
ViTrox has secured sufficient inventory for planned 3QFY26F deliveries while qualifying Chinese camera module suppliers and establishing a 15,000 sq ft assembly facility in China to shorten lead times and lower costs.
CIMB Securities expects the company’s core net profit to grow at a 58% compound annual growth rate between FY25F and FY27F, supported by margin expansion from its product upgrade cycle and sustained AI-related semiconductor demand.
It also noted ViTrox plans to invest RM150 million to RM200 million in its new Campus 5 facility in Batu Kawan, with construction expected to begin in the second half of FY26F.
As of 10.47 am, the stock price increased 0.57% to RM8.75.
