Inari Amertron

[winston]

not vested

Inari’s FY24 outlook likely to improve

PETALING JAYA: Near-term challenges due to lacklustre smartphone shipment will continue to weigh on Inari Amertron Bhd, whose core earnings at RM255mil for the nine-month period of financial year 2023 missed analysts’ estimates.

For the period under review, revenue came in lower by 12.9% year-on-year to RM1.06bil amid low demand for consumer devices, while 3Q23 revenue and core profit fell 23.5% and 41% from a year ago, with weaknesses seen in the radio frequency and optoelectronic businesses, said the research house.

Going forward, it expects new power modules on the system-on module platform, sensors, memory, and power LED to drive growth in FY24.

Source: The Star

https://www.thestar.com.my/business/bus ... to-improve

[winston]

not vested

Semiconductor players set to see rebound this year

In the outsourced semiconductor assembly and test space (Osat), Kenanga Research said its preference remains with Inari Amertron Bhd due to its proactive strategy towards artificial intelligence-related products.

Inari has initiated low-volume production through a single line for a memory customer, with plans to expand to four lines by June this year.

The company has indicated that this venture into memory products will eventually position it to capitalise on the growing demand for artificial intelligence (AI) applications, as memory plays a crucial role alongside graphical processing power.

Furthermore, its foray into optical transceivers is gaining momentum, driven by the transition to 800 gigabits per second by customers seeking faster data transfer rates within data centres to accommodate growing AI adoption, it added.

Meanwhile, for its radio frequency business (about 63% of group revenue), Inari anticipates the upcoming low cycle in 1Q23 to be manageable, cushioned by the absence of power interruptions that occurred in the prior quarter.

Source: The Star

https://www.thestar.com.my/business/bus ... -this-year

[winston]

not vested

Inari Amertron (INRI MK)
9MFY24: In Line With House Expectation; Gearing Up For Next Growth Engine

Inari’s results were in line with our forecast but below consensus expectation.

The group is back to growth trajectory again in 2024 predominantly driven by its RF segment (on new flagship programme) after a gestation year in 2023.

In view of 27.3x ex-cash 2024F PE (-0.5SD below its five-year mean) with negative de-ratings being
priced in, we see a balanced risk-reward ratio for a favourable entry point.

Maintain BUY. Target price: RM3.60.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

Inari-Amertron Bhd
No major surprises

9MFY24 core net profit (-3% yoy) was in line with our estimates, at 72%/70% of our/Bloomberg consensus’ full-year forecasts.

Operational footprint expansion for new businesses is underway, but EPS contribution may still be negligible in FY24F, in our view.

We reiterate our Hold call with a GGM-derived TP of RM2.90. At 35.4x FY24F P/E, the stock is trading close to +1 s.d. of its 8-year mean of 29x.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... E91153A9BD