ABI is on track for steady sequential growth, with sales likely exceeding RM130m in 4Q25 (3Q25: RM127m), backed by growing order backlog a solid order visibility from China and Mexico.
MVS-T is conservatively guided to ship 40–60 units in 4Q25 (3Q25: 52 units), though we believe deliveries will likely come in at the upper range, amidst ongoing capacity expansion by key OSAT customers in Taiwan and China.
We expect the group to achieve yet another record high quarterly revenue in 4Q25, buoyed by sequential expansion across ABI and MVS segments.
ViTrox’s growth momentum should accelerate in FY26, underpinned by lower ETR post-renewal of pioneer status incentives and improved product mix. With new models making up bulk of its sales by 2H26, we anticipate a double-digit growth in blended ASP for its product portfolio in FY26, which should drive both revenue growth and margin expansion.
Revised our FY25/26/27F earnings upward by 5%/3%/1% after imputing slightly higher unit shipment assumption for MVS-T segment. Maintain BUY rating with a slightly higher TP of RM5.10, derived from a 46x PE multiple applied to mid-FY26F EPS.
We came away from ViTrox’s analyst briefing with the following key takeaways:
A closer look at 3Q25 results. The record high 3Q25 quarterly revenue of RM228.6m (+25% QoQ) was primarily driven by MVS-T sales of RM79.4m (+49% QoQ) following record shipments of 52 units during the quarter (2Q25: 33). The surge was led by robust demand for tray-based wafer handlers, particularly from back-end semiconductor inspection customers in Taiwan and China for AI and memory-related applications. Meanwhile, ABI segment delivered moderate growth to RM127.3m (+14% QoQ) as its new QX1 AXI model and 3D AOI machines gained traction in 3Q25. In summary, management observed broad-based recovery and decreasing order lead time across AI, automotive (EV), aerospace and consumer industries.
Setting stage for record quarterly sales in 4Q25. We expect the group to achieve yet another record high quarterly revenue in 4Q25, buoyed by sequential expansion across ABI and MVS. The MVS-T segment is conservatively guided to ship 40–60 units in 4Q25 (3Q25: 52 units), though we believe deliveries will likely come in at the upper range, backed by a healthy sales funnel of around 80 machines for the next six months amid ongoing capacity expansion by key OSAT customers in Taiwan and China. ViTrox noted that there could be further upside in sales volume, should it navigate the current supply chain bottlenecks effectively.
Meanwhile, ABI is on track for steady sequential growth, with sales likely exceeding RM130m in 4Q25 (3Q25: RM127m) in our view, backed by growing order backlog to RM86m (22 Oct) (vs RM60m at end-Sep) amidst solid order visibility from China and Mexico. Management highlighted strong uptake of its next-generation QX1-HR AXI machine with 11 orders already secured, driven by AI server and 5G applications, while its new die sorting machine (V510Ai DST) is highly sought after for automotive back-end inspection processes.
Growth acceleration ahead for FY26. We expect the growth momentum to accelerate in FY26, underpinned by lower effective tax rate (ETR) and improved product mix. Management expressed confidence of securing renewal of its pioneer status incentive for new products by end-4Q25. If materialised, its ETR is estimated to ease to mid-teens in 1H26 and further decline to single digits in 2H26 as legacy products are gradually phased out over the year. Our current ETR assumption for FY26 stood at a conservative 15%. Additionally, with new models making up bulk of its sales (c.80%) by 2H26, we anticipate a double-digit growth in blended ASP for its product portfolio in FY26, which should drive both revenue growth and margin expansion.
Forecast. We have revised our FY25/26/27F earnings upward by 5%/3%/1% after imputing slightly higher unit shipment assumption for MVS-T division.
Valuation & Recommendation. We maintain BUY rating with a slightly higher TP of RM5.10, derived from a 46x PE multiple applied to mid-FY26F EPS of 11.1 sen. Our target multiple, which represents +1SD above ViTrox’s 5-year historical average PE of 40x, reflects our view that the stock is poised for a rerating on the back of: (i) rising exposure to high-growth segments such as HPC/AI server manufacturing and advanced semiconductor packaging, and (ii) strong double-digit earnings growth over our forecast horizon, supported by the semiconductor capex upcycle to meet AI-driven demand.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.095157 | 4.126734 |
| EUR | 4.808018 | 4.811741 |
| CNY | 0.582345 | 0.582796 |
| HKD | 0.526309 | 0.529879 |
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