For QE30/9/2019, Vitrox's net profit dropped by 43% q-o-q or 51% y-o-y to RM14 million while revenue dropped by 25% q-o-q or 35% y-o-y to RM67 million. Revenue dropped y-o-y mainly because of decline in customer demand by 39% and 24% from Automated Board Inspection (ABI) and Machine Vision System (MVS) respectively. The profit before tax declined by 52% due to decline in sales volume coupled with product mix apart from continuous investment in R&D activities.
Table: Vitrox's last 8 quarterly results
Graph: Vitrox's last 42 quarterly results
Vitrox (closed at RM8.07 yesterday) is now trading at a PE of 42 times (based on last 4 quarters' EPS of 19.40 sen). At this PER, Vitrox is deemed fully valued.
Vitrox is still in an uptrend line with support at RM7.00-7.10. Its immediate support is at the horizontal line at RM7.30.
Chart: Vitrox's weekly chart as at Oct 24, 2019 (Source: Malaysiastock.biz)
Based on weaker financial performance and demanding valuation, I think it is advisable to take profit on Vitrox after a strong run-up since August 2017 (here).