ViTrox to close 1H15 with RM100m sales, says HLIB Research

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KUALA LUMPUR (April 15): Hong Leong IB Research has maintained its “Buy” rating on ViTrox Corporation Bhd at RM3.56 with an unchanged target price of RM3.80 and said ViTrox’s 1Q15 sales could potentially grow 49% year-on-year (y-o-y) to RM34 million, the strongest 1Q ever.

In a note today, the research house said that for 2Q15, it expects ViTrox to operate at full capacity at similar level to 2Q14 with a target of circa RM65 million sales.

“In turn, ViTrox will probably close 1H15 with RM100 million sales, about 50% of HLIB’s forecast.

“2Q15 and 3Q15 is expected to be levied at normal corporate tax rate as pioneer status will end in 1Q15 and renewal should be achieved on 4Q15.

“Reiterate Buy with unchanged target price of RM3.80,” it said.