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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