Maybank Investment Bank Bhd (Maybank IB) has issued a SELL call for ViTrox Corp with an unchanged target price of RM3.40 even though the company has made significant progress in its environmental, social and governance efforts for FY23, receiving an above-average overall score of 60/100, up from 55/100 previously.

The research house, however, kept ViTrox's FY24-FY26 earnings estimates unchanged as the company's environmental performance, particularly in terms of emissions, remains a key area for improvement.

The company's intensity metrics for emissions, energy and water usage have risen due to the expansion of its Campus 3.0, and it did not meet its target of reducing emissions by 2% per annum. While there were no environmental non-compliance issues, these intensity metrics weigh on the company's overall ESG score.

However, on the social front, ViTrox has made notable strides as the company has seen a 12% increase in female representation in executive leadership, from 23% in FY21 to 35% in FY23.

Despite the ESG challenges in certain areas, ViTrox said it will continue to focus on sustainable practices.