ViTrox posted 4QFY25 core net profit of RM44.6m (+32% QoQ, +49% YoY), bringing FY25’s sum to RM142.4m (+28% YoY). The results exceeded both our and street expectations, coming in at 107% of FY25 forecasts due to better-than-expected billings from both MVS and ABI segments.
The group’s 4QFY25 book-to-bill ratio stood at 1.1x (3QFY25: 1.2x), still indicating sustained demand momentum heading into the next quarter despite a record-high revenue base.
We raise our FY26/27 forecasts by 8.1%/6.5% by imputing higher sales unit assumptions for both ABI and MVS segments. Maintain BUY rating with a higher TP of RM5.30 (from RM4.95), derived from a 46x PE multiple applied to mid-FY26F EPS of 11.5 sen.
Results beat. ViTrox posted 4QFY25 core net profit of RM44.6m (+32% QoQ, +49% YoY), bringing FY25’s sum to RM142.4m (+28% YoY). The results exceeded both our and street expectations, coming in at 107% of FY25 forecasts. The positive deviation stemmed from better-than-expected billings from both MVS and ABI segments. 4QFY25 results were arrived after adjusting for forex loss (RM9m), impairment loss on financial assets (-RM4m), net inventories written down (RM1m) and fair value gain on financial instruments (-RM2m) and fair value gain on investment properties (RM5.8m).
QoQ. Revenue grew 27% thanks to stronger contribution from both ABI and MVS segments as a result of demand upcycle from both back-end semiconductor and EMS to support higher process control intensity for advanced packaging and AI server manufacturing. Core earnings jumped at a faster clip at 32%, aided by lower effective tax rate at 25% (3QFY25: 32%). During the quarter, the group secured pioneer tax incentives from MIDA for its new 4D Advanced Industrial Automation Systems and equipment related to semiconductor advanced packaging and AI smart factories, although the earnings impact remains limited as the bulk of revenue is still derived from non-pioneer products, in our view.
YoY/YTD. Core net profit surged 49% YoY/28% YTD propelled by escalating sales volume from both ABI and MVS segments due to the aforementioned reasons in QoQ para. However, earnings growth would have been greater if not for a higher effective tax rate of 25% (FY24: 13%), following the expiry of pioneer tax incentives in June 2025.
Outlook. The group’s 4QFY25 book-to-bill ratio stood at 1.1x (3QFY25: 1.2x), still indicating sustained demand momentum heading into the next quarter despite a record-high revenue base. Demand for both MVS and ABI solutions remains robust, and notwithstanding ongoing forex headwinds, we expect continued sequential earnings expansion supported by better operating leverage and solid pricing power amidst a AI-driven demand upcycle and expanding NPI pipeline across both ABI and MVS divisions. Additionally, the renewal of pioneer status during the quarter should lower the effective tax rate in FY26 to c.10-15%, based our estimates.
Forecast. Due to the results beat, we raise our FY26/27 forecasts by 8.1%/6.5% by imputing higher sales unit assumptions for both ABI and MVS segments.
Valuation & Recommendation. We maintain BUY rating with a higher TP of RM5.30 (from RM4.95), derived from a 46x PE multiple applied to mid-FY26F EPS of 11.5 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.
Risks. Appreciation of RM against USD, US semiconductor tariffs and geopolitical uncertainties, slowdown in DC megatrend.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.873662 | 3.904007 |
| EUR | 4.585195 | 4.588916 |
| CNY | 0.568471 | 0.568935 |
| HKD | 0.495355 | 0.498755 |
| SGD | 3.066257 | 3.087192 |