Inari Amertron

[winston]

not vested

Inari shares slip, analysts slash earnings forecasts after underwhelming 2Q

By Yu Jien Lim

3.6% year-on-year increase in net profit for the three months ended Dec 31, 2024 (2QFY2025).

Revenue contracted by 15.7% to RM348.97 million from RM414.08 million in 2QFY2024,

Optoelectronic segment and volume loading is likely to remain low until the new 800G capacity becomes operational in the Philippines sometime in June 2025.

There are now two 'buy', three 'hold' and no 'sell' calls.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/745321

[winston]

not vested

Inari Amertron shares surge to three-month high on global semiconductor recovery, easing US chip export controls

Shares of Inari Amertron Bhd (KL:INARI) surged to a nearly three-month high in early trade, following continued growth in global semiconductor sales and optimism, and potential easing of US chip export controls, which could benefit Malaysia.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/754867

[winston]

not vested

Inari Amertron cautiously optimistic about FY25

Inari Amertron Bhd sees strong growth in data communications, flat growth in smartphones and softening in industrial semiconductors.

Inari’s net profit fell 24.7% to RM55.5mil, or earnings per share of 1.46 sen.

Revenue for the quarter dipped to RM308.2mil from RM347.6mil a year ago.

Source: The Star

https://www.thestar.com.my/business/bus ... about-fy25

[winston]

not vested

Bold move, eyes on execution

Inari partners with Sanan to acquire Lumileds

Inari has announced that it has partnered Sanan Optoelectronics to jointly acquire 100% of Lumileds Int’l, a global LED solutions provider at USD280m (c.MYR1.2bn).

The investment will be funded via existing private placement proceeds, with transaction completion by March 2026.

We see strategic merit in diversifying beyond RF into the LED space but remain cautious given the limited earnings visibility and integration risks.

We maintain forecasts and lift TP to MYR2.14 from MYR2.00 (23x CY26E PER; -1SD to 5Y fwd. Mean), maintain HOLD.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/474975.pdf

[winston]

Inari Amertron (INRI MK)

A Bold Yet Strategic Move, Unlocking Multi-Pronged Upside

Inari is partnering San’an to jointly acquire 100% shares in Lumileds for a total enterprise value of US$280m, subject to net debt adjustments.

While earnings accretion hinges on a successful operational turnaround, we view it as a net positive, given:
a) a more diversified portfolio with reduced cyclicality;
b) a new revenue stream through the OSAT insourcing model; and
c) access to top-tier global names in the automotive, industrial and smartphone segments.

Maintain BUY. Target price: RM2.36.

Source: UOBKH

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

[winston]

Awaiting re-rating triggers

Maintain HOLD and TP at MYR2.14

We came away from the briefing neutral on INARI’s progress.

Management noted improved customer loading forecasts, though much depends on the upcoming customer phone launch.

Other segments remain largely on track, either gradually ramping up or still in qualification.

Discussions on the JV acquisition are ongoing, with a decision anticipated by 1HCY26.

We maintain HOLD with a TP of MYR2.14, pegged to 23x CY26E EPS (-1SD 5Y forward mean).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/483404.pdf

[winston]

not vested

0166 INARI (HOLD)
Challenging near-term setup

Inari reported 1QFY26 core PAT of RM55m (-14% QoQ, -29% YoY), missing expectations at just 21%/19% of our and consensus full-year estimates.

Softer RF segment performance, likely driven by share allocation loss and a weaker USD, was the key drag.

We cut FY26-27 EPS by 20%/8% to reflect these headwinds, while maintaining our HOLD call with a lower TP of RM2.00, based on 28x CY26 PE (ex-interest income) + RM2.2bn net cash.

Near-term setup for the stock is challenging, but we see opportunities to accumulate on significant pullbacks, supported by medium-term catalysts such as potential RF content recovery in the next model cycle, pick-up in the optoelectronics segment, and completion of the Lumileds acquisition.

Source: HLIB

[winston]

not vested

0166 INARI (BUY)
Time to chip in again

We believe concerns over RF segment softness have largely played out, and expect sentiment to improve from here as we head into the next smartphone cycle in 2HCY26.

Overall, Inari's US smartphone end-customer is gaining market share amid the ongoing memory shortage.

We believe the transition to an in-house modem is a net positive for Customer B's RF socket allocation — underpinning our c.20% RF revenue rebound in FY27, with the 20th-anniversary flagship cycle providing further volume tailwind in 2027.

Beyond RF, the datacom photonics segment could also offer incremental growth as AI-driven optical demand accelerates.

Our FY27-28F earnings sit 8%/6% above consensus.

Upgrade to BUY with a revised RM2.20 TP (28x CY27 PE + RM2.2bn net cash).

Source: HLIB

[winston]

not vested

Inari Amertron poised for FY2027 rebound as radio frequency and photonics segments strengthen

By Brandon Pang

Improving prospects in its radio frequency (RF) and datacom photonics segments following the expectation of a softer financial year of 2026 (FY2026).

RF segment it is set for a rebound in its revenue in FY2027, underpinned by its US smartphone customers’ market share gains and the transition to its in-house modems as customers are phasing out Qualcomm’s in favour of its modem.

Expects the optoelectronic segment to contribute more than a third of the group’s revenue in FY2027-FY2028, an improvement from the first half of 2026, mainly driven by the wafer fab expansion in Singapore.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/800490