Inari Amertron cautiously optimistic about FY25
In the third quarter ended March 31, Inari's net profit fell 24.7% to RM55.5mil.
PETALING JAYA: Inari Amertron Bhd sees strong growth in data communications, flat growth in smartphones and softening in industrial semiconductors.
'We see the major impact of the ongoing US tariff negotiations as realigning supply chains, costing and margins. Navigating the wider forex fluctuations adds difficulty to sustaining gross margins,' the semiconductor company said.
'Amid heightened uncertainty, the group maintains a cautiously optimistic outlook for the remainder of the financial year ending June 30, 2025 (FY25) and FY26, with our expectation that tariff tensions will ease,' Inari said.
In the third quarter ended March 31, Inari's net profit fell 24.7% to RM55.5mil, or earnings per share of 1.46 sen, compared with RM73.7mil and 1.97 sen achieved last year. Revenue for the quarter dipped to RM308.2mil from RM347.6mil a year ago.
The board has proposed a third interim tax-exempt dividend of 1.30 sen per share for FY25. The entitlement date is June 10, and the dividend will be paid on July 8.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
22-05-2025
- The Star
Inari in search growth prospects amid challenges to RF segment
PETALING JAYA: Inari Amertron Bhd is looking for growth beyond its flagship radio frequency (RF) division as the outlook for this is subdued. Analysts have come out cautious post a briefing on the company's third quarter ended March 31, 2025 (3Q25) performance, which came in below expectations. Inari's normalised net profit for 3Q25 fell 11.5% year-on-year to RM57.9mil, while revenue was down 11.3% to RM308.3mil. This was due volume loading weakness across all business segments. Inari Amertron is the biggest semiconductor player locally. It is one of US-based Broadcom Inc's top third-party packaging and testing services providers in the thriving wireless segment. CIMB Securities Research said during the briefing, Inari indicated a subdued growth outlook for RF content gains tied to next-generation smartphone launches in the second half of 2025. "Any potential upside in RF value is expected to be driven more by market share gains from competitors and the introduction of new processes, rather than new socket wins. "We also gather that RF utilisation slipped to around 65% in 3Q25, down from 75% in 2Q25. Nonetheless, the group expects similar volume loadings in 4Q25," the research firm said in a report. According to CIMB Research, Inari is targeting financial year 2025 (FY25) revenue of RM1.35bil (based on mid-point guidance), implying flat quarter-on-quarter sales in the final quarter. Additionally, Inari does not foresee any front-loading activities boosting near-term utilisation, as its key RF customer is maintaining a steady volume loading forecast for the upcoming quarters. Despite challenges in the RF segment, Inari remains optimistic with growth prospects to be driven by memory module, power management, and automotive MCU testing programmes. "We expect these initiatives to contribute between RM80mil and RM100mil in revenue, making up about 6% of total FY26 sales. Inari's first memory product has already entered high-volume manufacturing, achieving a high yield rate and improved throughput, which bodes well for future contributions. "For example, the group expects to raise its memory module production volume by 33% in 4Q25F Additionally, the company is actively working to secure qualifications for new products in the coming quarters, further strengthening its diversification efforts," added the research firm. It is also working to optimise production at its 55%-owned China-based subsidiary, Yiwu Semiconductor International Corp by expanding its product portfolio to include advanced packaging solutions tailored for the domestic market. CIMB Research has kept its Buy call and RM2.20 target price on the stock. On the other hand, Maybank Investment Bank (Maybank IB) Research is maintaining its Hold stance, citing muted near-to-medium term prospects. It said a "significant positive shift in demand is needed for us to re-rate the stock". The research firm said plans to move up the value chain in its sensor business which should bode well for future prospects. "Its existing key customer in the segment has plans to aggressively grow into new generic sensor segments and redesignate some China-for-China products to Imari. However, its Yiwu factory has yet to yield positive new product initiative results with management alluding that its facility there may undergo restructuring to enhance yield," said Maybank IB Research, which has a RM2 target price on the stock. Shares of Inari was trading at RM1.87 at the time of writing, down 13.43% in the past five days.
Malaysian Reserve
21-05-2025
- Malaysian Reserve
Inari Amertron results below expectations, downgraded to 'Market Perform'
INARI Amertron Bhd has been downgraded to 'Market Perform' from 'Out Perform' at Kenanga Research after releasing its latest quarterly results which saw a drop in both its revenue and net profit. In a note released today, Kenanga Research said Inari's first nine months results came in below expectations, primarily due to weaker demand in its radio frequency (RF) and opto-electronics segments. It said the Group anticipated continued growth in the data communications segment, but demand for bread-and-butter smartphones and other semiconductor products is expected to stay muted. 'Post US 'liberation day', it is becoming evident to us that margin pressures are likely to persist amid ongoing forex volatility and US-China tariff war uncertainties. Incorporating a more cautious outlook, we trim FY25F/FY26F earnings forecasts by 8%/16%,' it said. The research house has lowered the counter's 52-week target price (TP) to RM2.00 from RM2.39. Inari has 12 'Buy', seven 'Hold' and three 'Sell' calls among the analysts tracked by Bloomberg, with a consensus TP of RM2.26. In its exchange filing yesterday, Inari said its net profit for the first nine months ended March 31, 2025 was down 30.9% to RM169.6 million on a revenue of RM1.045 billion, down 11.3%. It said the revenue decrease was mainly due to comparatively lower volume loading of products in all business segments and product mix. The lower profit was attributed to lower volume loading, unfavorable movement in foreign exchange rates, and start up loss of RM15.70 million at China subsidiary during the period. Excluding China subsidiary losses, the decrease will be 27.0%. For the third quarter (3Q25), its net profit plunged 24.8% to RM55.5 million on a revenue of RM308.3 million which was 11.3% lower compared to the same period. In the company's outlook, Kenanga Research said Inari anticipates selective growth within the semiconductor industry, driven by the accelerating adoption of generative AI across various sectors. The group also expects robust performance from the data communications segment – which contributed approximately 14% of 9MFY25 revenue – while demand for smartphones (68% of sales) and other semiconductor products is likely to remain subdued. 'Margin pressures are expected to persist, stemming from forex volatility and ongoing US-China tariff negotiations, which continue to disrupt supply chains and inflate cost structures,' according to the report. At 9.40am today, Inari shares were down 5% or 10 sen to RM1.92 (52-week high/low: RM4.02/RM1.42). — TMR
The Star
20-05-2025
- The Star
Inari Amertron cautiously optimistic about FY25
In the third quarter ended March 31, Inari's net profit fell 24.7% to RM55.5mil. PETALING JAYA: Inari Amertron Bhd sees strong growth in data communications, flat growth in smartphones and softening in industrial semiconductors. 'We see the major impact of the ongoing US tariff negotiations as realigning supply chains, costing and margins. Navigating the wider forex fluctuations adds difficulty to sustaining gross margins,' the semiconductor company said. 'Amid heightened uncertainty, the group maintains a cautiously optimistic outlook for the remainder of the financial year ending June 30, 2025 (FY25) and FY26, with our expectation that tariff tensions will ease,' Inari said. In the third quarter ended March 31, Inari's net profit fell 24.7% to RM55.5mil, or earnings per share of 1.46 sen, compared with RM73.7mil and 1.97 sen achieved last year. Revenue for the quarter dipped to RM308.2mil from RM347.6mil a year ago. The board has proposed a third interim tax-exempt dividend of 1.30 sen per share for FY25. The entitlement date is June 10, and the dividend will be paid on July 8.
