[%DybH%] 
Research by HLIB
HOLD – TP RM2.92

" Flattish guidance”

Since the start of 2024, we did not favour the semiconductor equipment/SPE/ATE subsector which ViTrox is part of and its earnings have disappointed over the past six quarters consecutively. After our Sell call, share price plunged near to our TP which is the lowest amongst peers. By summing the mid-points of its guidance and assuming flat sequential growth in ECS, 3Q24 sales could potentially be flat sequentially at RM137m but fall 9% YoY. As downside is <10% now, we upgrade ViTrox to HOLD with an unchanged 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 due to excess capacity in the supply chain.

Analyst: 
Tan J Young
[%oBKs%]

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

" Flattish guidance”

Since the start of 2024, we did not favour the semiconductor equipment/SPE/ATE subsector which ViTrox is part of and its earnings have disappointed over the past six quarters consecutively. After our Sell call, share price plunged near to our TP which is the lowest amongst peers. By summing the mid-points of its guidance and assuming flat sequential growth in ECS, 3Q24 sales could potentially be flat sequentially at RM137m but fall 9% YoY. As downside is <10% now, we upgrade ViTrox to HOLD with an unchanged 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 due to excess capacity in the supply chain.

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

$VITROX / 0097 (VITROX CORPORATION BERHAD)