[%JoLp%]
Research by HLIB
Sell – TP RM2.92

“Slower-than-expected recovery"

1H24 core net profit of RM46m (-32% YoY) was a miss. The deviation was due to lower-than-expected top line and EBITDA margin. Bill-to-book ratio inched up at 1.1x in Jul 2024. It is cautiously optimistic on 2H24 business prospects as the slower-than-expected economic recovery will lead to volatility and challenges ahead. The group is confident in achieving steady growth and improvements in the semiconductor back-end sector. Maintain SELL with lower TP of RM2.92. While we like its technology leadership and asset-light business model, we do not expect demand to recover in the short-term as the supply chain continues to operate with excess capacity.

Analyst:
Tan J Young
[%dcUI%]

$KLSE-VITROX
Research by HLIB
Sell – TP RM2.92

“Slower-than-expected recovery"

1H24 core net profit of RM46m (-32% YoY) was a miss. The deviation was due to lower-than-expected top line and EBITDA margin. Bill-to-book ratio inched up at 1.1x in Jul 2024. It is cautiously optimistic on 2H24 business prospects as the slower-than-expected economic recovery will lead to volatility and challenges ahead. The group is confident in achieving steady growth and improvements in the semiconductor back-end sector. Maintain SELL with lower TP of RM2.92. While we like its technology leadership and asset-light business model, we do not expect demand to recover in the short-term as the supply chain continues to operate with excess capacity.

Analyst:
Tan J Young
jytan@hlib.hongleong.com.my

$VITROX / 0097 (VITROX CORPORATION BERHAD)