ViTrox "Riding the back-end capex upcycle" (Buy) Koh

Research evidence excerpt

ViTrox "Riding the back-end capex upcycle" (Buy) Koh

Global Research

22 May 2026ab

ViTrox Equities

MalaysiaRiding the back-end capex upcycle

Semiconductors

12-month rating Buy

Earnings momentum still building up

We like ViTrox as a key beneficiary of ongoing capacity scaling across the broader back- 12m price target RM7.80

end semiconductor and electronics manufacturing supply chain. Despite recent share Prior : RM4.53

price outperformance, we believe the company’s ability to deliver meaningful sequential

Price (21 May 2026) RM6.60

growth in the upcoming quarters remains underappreciated, with our earnings

estimates implying a 25%/12% upside to consensus in 2026E/27E. Notably, even with a RIC: VTRX.KL BBG: VITRO MK

strong revenue ramp over the past four quarters, ViTrox has sustained a book-to-bill

Trading data and key metrics

ratio above 1x, signalling continued order strength. Our analysis of major OSAT and EMS

52-wk range RM6.60-3.17

capex trends suggests positive order momentum for back-end semiconductor

equipment should persist through the remainder of 2026, with potential spillover into Market cap. RM12.5b/US$3.15b

2027. Overall, we believe capital goods suppliers such as ViTrox should outperform in a Shares o/s 1,893m (ORD)

capex upcycle, and we resume our coverage with a Buy rating. Free float 30%

Avg. daily volume ('000) 2,970

Product innovation drives deeper exposure to AI HPC supply chain Avg. daily value (m) RM15.7

ViTrox’s ABI and MVS segment revenues aligned with EMS/ODM and OSAT capex cycles Common s/h equity (12/26E) RM1.29b

respectively in the past, and we see strong capex step-up across both verticals. Major P/BV (12/26E) 9.7x

OSATs (ASE, KYEC, JCET, Amkor) are seeing capex growth sustaining at +66% YoY in Net debt to EBITDA (12/26E) NM