CEO Morning Brief

Vitrox Ends FY2022 on Stronger Note But Expects Downturn in 1H 2023

Publish date: Fri, 24 Feb 2023, 08:37 AM
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TheEdge CEO Morning Brief
Vitrox ends FY2022 on stronger note but expects downturn in 1H 2023

KUALA LUMPUR (Feb 22): Vitrox Bhd says it is bracing for a temporary downturn in the first half of this year, right after closing its financial year ended Dec 31, 2022 (FY2022) with a 5.38% rise in net profit in the final quarter to RM48.6 million from RM46.12 million a year ago on a more favourable product mix.

The temporary downturn is expected to come amid softer global economic growth and uncertainties in general business outlook in the first half of the year, it said in a bourse filing.

“Thus, the group will put more emphasis on long-term growth strategies while preparing for a temporary downturn. The 10-year expansion master plan (2021 to 2030) in Batu Kawan is expected to further strengthen the group’s manufacturing and R&D [research and development] facilities," Vitrox said.

Nevertheless, the board is optimistic on its business prospects for the second half of the year 2023, saying its well-diversified revenue base and exposure to high-growth industries remain bright spots for the group.

Vitrox’s earnings per share for the final quarter of FY2022 expanded to 5.14 sen from 4.88 sen.

Quarterly revenue grew marginally by 2.28% to RM190 million, from RM185.76 million. The increase in revenue was predominantly contributed by robust demand from automated board inspection, partly offset by temporary weak demand from machine vision systems.

For the full FY2022, Vitrox’s net profit increased 18.36% to RM200.82 million from RM169.66 million for FY2021, while revenue grew 10.31% to RM750.25 million from RM680.12 million.

Shares of ViTrox settled six sen or 0.78% higher at RM7.74 on Thursday, giving the company a market capitalisation of RM7.32 billion.

Source: TheEdge - 24 Feb 2023

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