PETALING JAYA: Inari Amertron Bhd
’s earnings prospects are expected to strengthen over the next two financial years, underpinned by a recovery in radio frequency (RF) content demand, accelerating data centre photonics growth and emerging opportunities tied to artificial intelligence (AI) infrastructure.
The semiconductor group is also positioning itself for longer-term expansion through advanced packaging and power regulator modules for AI servers, as analysts turn increasingly optimistic on the company’s medium-term earnings trajectory.
CIMB Research said it sees RF content wins and integrated system level packaging as the core growth drivers, underpinning Inari’s mid-term earnings expansion and re-rating over financial year ending June 30, 2027 (FY27) to FY28.
“Advanced packaging and voltage regulator module power solutions could provide ‘longer-term upside’, potentially lifting FY28 revenue towards RM1.8bil to RM2bil.”
It upgraded Inari to “buy” from “hold”, with a higher target price of RM2.65 after raising its FY27 and FY28 earnings estimates by between 3% and 19%, although it trimmed FY26 earnings per share forecasts by 5%.
It noted that Inari is targeting up to nine RF sockets for new smartphone launches in FY28, saying the group’s “diversification strategy within the RF front-end module is gaining traction”.
CIMB Research also highlighted that RF utilisation rates had hovered between 50% and 55% in the third quarter of FY26.
TA Research expects a stronger FY27 performance after the company secured four circuits for an upcoming smartphone launch scheduled for September, which is projected to raise utilisation levels to between 70% and 75%.
It said the datacom photonics business would remain “a key multi-year growth driver, supported by robust AI and data centre demand”, with strong order intake and higher volume ramp-ups from key customers driving expansion plans at the group’s P34 plant.
TA Research also pointed to a rapidly expanding optoelectronics division, which accounted for 34% of revenue in the nine-months of financial year 2026 compared with about 30% a year earlier.
It maintained a “hold” recommendation but lifted its target price to RM2.32 from RM2.07 after increasing its target price-earnings multiple to 31 times 2027 earnings.
Hong Leong Investment Bank Research maintained its “buy” call with a higher target price of RM2.60 from RM2.20, saying concerns over weakness in the RF segment had “largely played out”.
The research house said sentiment should improve as “the RF content recovery and datacom photonics ramp take shape, particularly in the lead-up to the next smartphone cycle in the second half of financial year 2026”.
It added that datacom photonics is increasingly emerging as Inari’s new structural growth driver, supported by accelerating optical adoption in AI data centres and persistent supply tightness in high-power electro-absorption modulated laser chips.
Kenanga Research maintained its “outperform” rating and raised its target price to RM2.42 from RM2.02 after increasing FY27 net profit forecasts by 3% on expectations of higher RF loading.
It said Inari’s “medium-term outlook remains constructive”, supported by the upcoming flagship smartphone cycle, AI-driven optoelectronics and photonics growth, as well as optionality from advanced packaging and AI server power regulators.
Kenanga Research also highlighted the group’s move into power regulator components for AI data centre cards through a production line in the Philippines.
