Nomura downgrades ViTrox stock rating to Reduce despite revenue growth

Published 28/07/2025, 06:50
Nomura downgrades ViTrox stock rating to Reduce despite revenue growth

Investing.com - Nomura/Instinet downgraded ViTrox Corp Bhd (VITRO:MK) from Neutral to Reduce on Monday, while raising its price target to MYR3.50 from MYR3.08, following the company’s second-quarter earnings report.

ViTrox reported a 30% quarter-on-quarter increase in revenue for Q2 2025, driven by strong demand rebounds in both its machine vision system (MVS) and automated board inspection (ABI) segments, according to information shared at the company’s earnings briefing.

Despite revenue growth, the company’s profitability was negatively impacted by higher tax provisions following the expiration of its pioneer tax status and unfavorable foreign exchange movements.

The standard MVS segment posted revenue of MYR14.9 million in Q2 2025, up 48% quarter-on-quarter, while tray-based MVS revenue reached MYR53.1 million, increasing 59% from the previous quarter. Total (EPA:TTEF) MVS shipments rose 51% to 350 units, and ABI shipments increased 69% to 152 units.

China remained ViTrox’s primary market, contributing 38% of first-half 2025 revenue, followed by Malaysia (15%), Taiwan (13%), and the United States (10%), with the automotive sector accounting for 35% of revenue during this period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.