InstaForex

July 23, 2021

Record Best, ViTrox Shares Gain Durian Collapse

 ViTrox Corp Bhd showed an increase of RM1.72 or 9.78% in the trading session on Bursa Malaysia today after the group announced its net profit for the second quarter ended June 30, 2021.


At 11.07am, the counter rose RM1.66 or 9.44% to RM19.24 and became the most profitable counter in today's trade.


At RM19.24, ViTrox has a market value of around RM7.91 billion with 464,800 shares traded.


Maybank Investment Bank Research analyst Kevin Wong raised a ‘buy’ recommendation for ViTrox after seeing the group’s revenue growth prospects improve in line with the global industry’s rise.



Maybank IB said that ViTrox’s second quarter results were above home and street survey estimates at 57% and 59%, respectively.


"We remain positive on ViTrox's short -term revenue prospects with an assessment of the global semiconductor industry cycle, expanding 5G networks and increasing demand for 5G -related devices," he said.


Meanwhile, for Hong Leong IB analyst, Tan J Young stated that ViTrox's net profit exceeded expectations with a total of RM83 million which accounted for 60% and 57% of the home and road research estimates respectively.


“ViTrox’s technology leadership and light asset business model will continue to support further advanced growth,” added J Young.


ViTrox's net profit doubled to a record RM50.64 million from last year amid the semiconductor boom.