Inari Amertron: Muted Growth in 2H

Public Investment Bank says it continues to see headwinds ahead for Inari Amertron for its smartphone Radio Frequency (RF) segment.

“We continue to see headwinds for its smartphone Radio Frequency (RF) segment (61% of group revenue) from a weaker US dollar, and higher memory and raw material prices, which are weighing on its profit margin.”

Inari Amertron

To mitigate the RF segment’s weakness, management is shifting its focus towards datacom photonics and power management segments as it expects strong demand for FY27-28F.

“We maintain a Neutral stancewith a lower TP of RM1.48 based on a revised 24x FY27 EPS after cutting our FY26-28F earnings forecast by 7-10% as we factor in i) a lower USDMYR assumption to 4.05 from 4.20, and ii) a lower RF contribution from a decline in RF content.”

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