Key Takeaway from Analyst Briefing Last Friday: To recap 1QFY24 results, Virtox’s core net profit decline of 30% QoQ was mainly due to higher R&D expenditure for new product introductions (RM4mil), lower automated board inspection (ABI) demand (-12% QoQ) from Mexico and lower machine vision system (MVS) purchases (-25% QoQ) and higher service cost on component parts failure for service contract customers (RM3-5mil). In the near term, we are still seeing a pickup in business activities but orders are still slow in the consumer electronics and back-end semiconductor sectors due to economic uncertainties. Vitrox guided for a revenue of RM121-140mil in 2QFY24 (MVS:40% and ABI:60%), supported by deliveries of new and some existing orders that have been pushed back in 1QFY24. We understand that Vitrox is facing certain challenges for all segments such as (i) shipment deferments due to a slowdown in automotive demand, with deliveries likely to occur in 2HCY24, and (ii) intensive competition in China to gain market share. Vitrox plans to address these challenges by revising its selling prices and develop new and more cost-effective models for its MVS tray (MVS-T) and ABI segment to compete with local Chinese players. Consequently, we anticipate a short-term margin squeeze resulting from lower average selling price and an increase in R&D costs for new models.
Can feed bro Pang with chicken bones! We will get abalones and lobsters for dinners… oh yes, shark fin soup to rinse our teeth before sleep tonight… haha!
In NVIDIA CEO Jensen Huang's keynote at COMPUTEX 2024, ViTrox was shown as a player of edge AI and robots in the factory ecosystem. We are proud to be an associate of the supply chain and are fully committed to delivering the most advanced, innovative and cost-effective vision inspection, AI and robotic solutions.
ViTrox will continue to work hand-in-hand with all industry players towards making a net-positive impact on the world. #ViTrox #NVIDIA #COMPUTEX2024 #AI
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
EatCoconutCanWin
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Posted by EatCoconutCanWin > 2024-04-26 07:51 | Report Abuse
Buy before too late. Next quarter upup 200% on AI and 6G