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Research by CGS
Reduce – TP RM3.15

“Rising operational challenges"

■ 2Q24 results missed expectations due to weaker-than-expected margins on the back of wider discounts provided to customers and higher R&D costs.
■ 3Q24 revenue guidance implies only marginal improvement qoq due to challenges from rising competition and election overhang in the US.
■ Downgrade to Reduce with a lower GGM-derived TP of RM3.15 in view of the challenging outlook ahead and lofty valuations at 40.3x FY25F P/E.

Analysts:
Shafiq KADIR
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Dharmini THURAISINGAM
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$KLSE-VITROX
Research by CGS
Reduce – TP RM3.15

“Rising operational challenges"

■ 2Q24 results missed expectations due to weaker-than-expected margins on the back of wider discounts provided to customers and higher R&D costs.
■ 3Q24 revenue guidance implies only marginal improvement qoq due to challenges from rising competition and election overhang in the US.
■ Downgrade to Reduce with a lower GGM-derived TP of RM3.15 in view of the challenging outlook ahead and lofty valuations at 40.3x FY25F P/E.

Analysts:
Shafiq KADIR
shafiq.abkadir@cgsi.com
Dharmini THURAISINGAM
dharmini@cgsi.com

$VITROX / 0097 (VITROX CORPORATION BERHAD)