VITROX (0097) - Vitrox- I bought more today because it has broken the new high resistance level




Actually did not plan to add more now, but the price keep moving up bit by bit, and has broken the resistance RM3.85 yesterday without I realising it, and today confirm broke-out. Straight away it reach the immediate resistance at RM4.00 but I couldn’t wait. Don’t want to miss the boat.Towards the end, the buying is still strong and closed at RM3.99. I don’t know what is the next resistance level, not yet learn, but based on a longer uptrend period triangle it could potentially add RM1.00 to RM5.00.
Still have a lot to learn on chart.
My first entry was RM3.4x, keep adding a bit until now.
I’m not a chartist or technical guy, the reasons are also based on fundamental below:

Backlog orders of about RM40mil as at early May 2016.
Pioneer status- tax exempted renewed
Uptrend of Book-to-bill Ratio.
Increased in demand for big brother MVS-T
New segment- moving up the value chain
Entry into wafer level/non-tech inspection

VITROX (0097) - Vitrox- I bought more today because it has broken the new high resistance level 
http://politemarket.blogspot.my/2016/07/vitrox-i-bought-moretodaybecause-it-has.html
New offering + Wider market = Better dynamics
Higher recurring income = Improving visibility
RM120 million to expand in 2016 and 2017
PE ratio 13 times is not too high.
Net cash with 2% dividend yield.

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Source: Maybank May 2016
From 17 June 2015 to 16 June 2024, Vitrox will resume its 100% tax exempted Pioneer Status (PS). To recap, Vitrox’s 4Q15 profit after tax was down by 40.7% q-o-q and 40.7% y-o-y to RM9.3m, due to tax provision while waiting for its PS to be renewed.
Moving into bigger
According to Maybank, the demand visibility- which has spill over to 3Q16 with MYR40m order backlog as at early-May. Book-to-bill ratio is on an uptrend, showing signs of healthy order replenishment.
Having sold only 18 units in 2015, the MVS-T is making a strong comeback this year; 15 units sold in 1Q16 with another 25 units in backlog.

New Segment
ViTrox’s new inroad into wafer inspection equipment which should see the first unit delivered in 3Q16. moving up the value chain to front-end semiconductor.

New Prospect
Elsewhere, ViTrox has also secured 3 equipment orders for its entry into non-tech related inspection (i.e. automotive fabricated & consumer products) with its new Robotic AOI inspection systems (which employ the use of robotic arms) which can be further developed to inspect various other products. Success in these ventures could unlock ViTrox’s addressable market to a whole new level.

New offering + Wider market = Better dynamics + Higher Recurring income
ViTrox’s business model is changing for the better. Wider customer base, and enlarged addressable market from new forays should smoothen its business volatility. With increasing installed base of its equipment, its services and data analytics offering would also provide a higher recurring income.


With a higher installed base of its equipment globally, ViTrox has been able to reap the benefit of stronger recurring service income. In 1Q16, service income jumped 141% YoY to MYR5.3m, making up 9+% of 1Q16 revenue. Growth in service income had been tremendous, at a 2-year CAGR of 93% from a small base (MYR4.7m in 2013) to MYR17.4m (11% of 2015 Group revenue). Further growth in equipment sales would see service income growing as a more significant earnings contributor to the Group given its high margin business structure.


The Start 21 March 2016
GEORGE TOWN: Vitrox Corp Bhd is allocating RM120mil to expand its operations in Penang this year and in 2017 to meet the rising global demand for its machine vision and vision inspection equipment.
Group chief executive officer Chu Jenn Weng toldStarBiz that the amount would be spent to complete the new facility in Batu Kawan, scheduled for operation in mid-2017, and to purchase production equipment for the existing plant in Bayan Lepas, which was 80% utilised.
Chu said the expansion exercise was necessary, as the machine vision make is projected to grow at a compound annual growth rate (CAGR) of 9.1% for the 2015 to 2020 period, according to a recent Markets and Markets report.
The report said the machine vision market is projected to grow to US$12.5bil in 2020 from US$8.08bil in 2015.
“The market is growing because of the need for quality inspection and automation, demand for vision guided robotics system in the manufacturing plants, and application-specific machine vision systems among the consumers.
“Asia-Pacific is considered the global manufacturing hub which will provide fresh opportunities for machine vision systems,” Chu said.
He said the demand for surface vision and inspection equipment was also rising rapidly.
The new Transparency Market Research report revealed that the sector would grow at a CAGR of 8.9% to reach US$2.3bil in 2019 from US$1.2bil in 2012.
The report said North America was the largest regional market for surface and inspection, with a revenue contribution of US$368mil to the global market.
Chu said the group would release new equipment in the second quarter to penetrate untapped markets. “The equipment are solder paste inspection and mini advanced X-ray inspection (AXI) machines, which should contribute positively to the 2016 fiscal year ending December. The mini AXI machine caters to the automotive and telecommunications industries. These products are priced between US$100,000 and US$350,000 per unit. We compete in terms of quality and user-friendly features and not pricing.”
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