RHB Research believes FY26 could mark a turning point for the company.
PETALING JAYA: There is cautious optimism for Inari Amertron Bhd
’s growth trajectory heading into the semiconductor company’s financial year ending June 30, 2026 (FY26) and beyond despite the near-term subdued outlook.
Analysts premised their optimism on potential catalysts from strategic partnerships, advanced packaging and growth in the data communications segment.
RHB Research believes FY26 could mark a turning point for the company, driven by stronger contributions from the memory and fibre optics segment.
“Growth of the radio frequency (RF) segment would largely depend on the popularity of the new smartphone range in the absence of content growth,” it said.
On Inari’s joint venture in Yiwu, RHB Research expects a gradual ramp-up given the stiff competition in the Chinese outsourced semiconductor assembly and test market.
The brokerage highlighted that Inari is “actively exploring strategic partnerships to capitalise on rapid shifts in supply chains and navigate the evolving geopolitical and trade environment” and is looking to secure grants under the National Semiconductor Strategy to accelerate progress in advanced packaging.
RHB Research maintained its “buy” rating and target price of RM2.45.
TA Research, meanwhile, noted that Inari remains cautious about its key smartphone and industrial segments “amid the ongoing trade war”. Nonetheless, the group is intensifying efforts to strengthen its China operations, focusing on product qualifications and operational efficiency.
It lowered its price-earnings ratio (PER) to 28 times from 30 times due to potential policy risks from the United States, and revised its target price to RM2.60 from RM3.10. It reiterated a “buy” call on the counter, citing Inari’s mid-to-long term growth prospects.
Maybank Investment Bank Research (Maybank IB) maintained its earnings forecast and “hold” call, highlighting that despite macroeconomic uncertainty and muted demand from smartphones and industrial semiconductors, Inari’s management has prudently managed costs thus far.
The brokerage added that “valuations remain undemanding with the stock trading at 23 times FY26 PER”.
Hong Leong Investment Bank (HLIB) Research said Inari faces “limited near-term catalysts” as RF content and smartphone volumes appear flat heading into the second half of 2025. However, it maintains a constructive view on 2026, supported by potential RF gains and a rebound in optoelectronics.
Kenanga Research struck a more cautious tone, citing industry-wide challenges but highlighting selective growth opportunities, particularly in generative AI-related demand.
