Vitrox posts higher 2Q profit on stronger US dollar

Vitrox posts higher 2Q profit on stronger US dollar
-A +A

KUALA LUMPUR (July 28): Vitrox Corp Bhd said its second quarter net profit rose slightly to RM51.35 million, from RM50.64 million a year ago, thanks to the stronger US dollar.

Earnings per share for the quarter ended June 30, 2022 increased to 5.44 sen from 5.37 sen, the electronics group’s filing with Bursa Malaysia showed.

Quarterly revenue decreased 3.46% to RM189.4 million from RM196.19 million last year amid lower sales demand from the group’s machine vision system division offsetting continued high demand from the automated board inspection (ABI) sector.

On a quarter-to-quarter basis, the net profit was 2.65% higher than the RM50.02 million reported for the January-March quarter, while revenue was up 2.22% from RM185.28 million.  

For the six-month period ended June 30, the group’s net profit grew 24.64% to RM101.375 million from RM81.34 million a year earlier, mainly due to the stronger US dollar and favourable product mix.

Six-month revenue rose 14.9% to RM374.67 million from RM326.08 million driven by strong demand from ABI.

Looking ahead, Vitrox said it is cautiously optimistic on achieving healthy business growth in the second half of 2022.

“The effort in continuous innovation of new products coupled with our relentless efforts in market expansion activities have successfully broadened the customer base, specifically from the automotive, telecommunication infrastructure and high performance computer segments.

“The strategy in securing critical parts has also smoothen the supply chain and the material shortage issue is being resolved toward the second half of 2022,” it added.

Vitrox’s share price closed up 21 sen or 2.84% at RM7.61 on Thursday (July 28), giving the group a market capitalisation of RM7.19 billion. Year to date, the counter has fallen 23% from RM9.84.

S. Kanagaraju