The robust profit of the first two semiconductor players to file their results in the latest cycle points to strong profit growth for a sector that was in the dumps earlier this year.
Penang-based Vitrox Corp Bhd announced yesterday its third quarter (Q3 FY2025) net profit jumped more than 50% to RM34.7 million from RM22.45 million a year ago while revenue soared 55.8% to RM228.57 million.
The automated test equipment maker attributed this to strong demand across both its automated board inspection and machine vision system segments, pushing topline growth to an all-time high.
Last month, UWC Bhd reported a sevenfold surge in net profit and a 43.5% rise in revenue for its fourth quarter (Q4 FY2025) on a rebound in the semiconductor sector.
The engineering supporting services provider’s net profit rose to RM16.46 million from RM2.37 million while revenue jumped to RM108.79 million from RM75.81 million.
UWC, located just a stone’s throw from Vitrox, provides precision sheet metal fabrication, machined components and assembly services.
More semiconductor counters are due to announce their results in the coming week or two, and investors are anticipating these stocks will pick up from where Vitrox and UWC left off.
Many of these stocks were bleeding during the tariff turmoil unleashed by US president Donald Trump earlier this year.
The Bursa Malaysia Tech Index tumbled in April when the US announced its reciprocal tariffs on a host of countries including Malaysia. The index is down 2.9% year to date.
Timely boost for Vitrox
Vitrox’s good results gave an immediate boost to the stock today as it rose as much as 28 sen or 6% to RM4.80, its highest level in over a year. At that price, the company is valued at RM9.08 billion.
It shares have nearly doubled since its April lows even as its quarterly revenue jumped to record highs as clients ramped up orders to beat US tariff deadlines.
In a recent note, CIMB Securities said the sector has moved past the trough of 2023 and 2024, as evidenced by most tech companies operating at healthy utilisation levels of above 80% and steady-to-improving order books.
It stated a preference for automated test equipment and outsourced semiconductor assembly and test players as they don’t incur any tariff-related costs. The research house also maintained its “neutral” call on the sector.
Meanwhile, TA Securities has adopted a “cautious” stance on the sector despite the projected continued growth in global semiconductor sales.
The research house’s position was prompted by lingering uncertainties over US trade policy.