Inari Amertron Berhad (Inari) is widely regarded as the leading technology stock in Malaysia, with its performance closely tied to Apple-related developments. As an Outsourced Semiconductor Assembly & Testing (OSAT) provider, Inari plays a crucial role in Appleโs supply chain by delivering radio frequency (RF) chip packaging and testing services through Broadcom. Given the recent challenges in the technology sector, including trade tariffs and evolving market conditions, investors are closely watching Inariโs financial performance and growth prospects. Letโs dive into the latest updates on Inariโs earnings and future expansion plans.
Q2FY2025 Earnings Results
YoY Q2 Comparison (FY2025 vs FY2024)
The Group’s revenue for Q2FY2025 stood at RM 349 mil, down 15.7% from RM414.1 mil in Q2FY2024, mainly due to lower product demand. However, profit after tax rose 1.7% to RM 88.1 mil in Q2FY2025 from RM 86.6 mil in Q2FY2024, helped by efficient operations and favorable foreign exchange rates.
YoY 1HFY2025 Comparison (1HFY2025 vs 1HFY2024)
For the 1HFY2025, the Group’s revenue fell 7.6% from RM 798 mil in 1HFY2024 to RM737 mil in 1HFY2025 due to lower volume of product demand and product mix. As for profit after tax, it dropped 36.0% from RM 172 mil in 1HFY2024 to RM110.1 mil in 1HFY2025, impacted by lower sales and unfavorable forex rates in Q1FY2025.
QoQ Comparison (Q2FY2025 vs Q1FY2025)
The Group’s revenue fell 10.1% to RM349 mil in Q2FY2025 from RM388 mil in Q1FY2025 due to lower product demand. However, profit after tax jumped 299.6% to RM88.1 mil in Q2FY2025 from RM 22.04 mil in Q1FY2025, boosted by a RM28.4 million foreign exchange gain in current quarter.
Future Prospects
Inari Amertron Berhad is focused on strengthening its semiconductor manufacturing capabilities through process optimization, automation, and capacity expansion. The company is enhancing production efficiency across key segments, including radio frequency, memory modules, optoelectronics, and automotive semiconductor testing.
To improve productivity, Inari is integrating advanced machine technology, increasing high-yield production, and expanding its turnkey solutions, particularly in the Philippines. It is also optimizing operations to reduce resource usage while maintaining high output quality.
Looking ahead, Inari is investing in next-generation semiconductor packaging technologies such as system-in-package, flip-chip, and 2.5D packaging to support artificial intelligence, data centers, and high-performance mobile devices. Additionally, Inari is aligning with Malaysiaโs National Semiconductor Strategy to secure government support for advanced packaging innovations.
To drive long-term growth, Inari is aggressively expanding its manufacturing footprint in Malaysia, China, and the Philippines. New facilities and land acquisitions will support increased wafer processing, final testing, and high-tech packaging capabilities.
Aside, Inari is also actively exploring mergers and acquisitions, particularly in the automotive sector, to strengthen its market position. While near-term uncertainties remain, Inari expects gradual improvements in production, driven by industry demand for fiber optics, artificial intelligence, and mobile technology.
Stock Chart
Inariโs share price has been on downtrend for 7 months since the highest point in July 2024, the retracement % achieved more than 40% and its still on-going based on recent developments. Based on current share price as per picture, the technical support falls at around RM 2.08 +/-, once it drops below, it might have retracement further down. Currently its pessimistic on the technical trend.
*Share price as at 25/2/2025 Closing*
Consensus Estimate
According to the consensus estimate from ShareInvestor, the average target price based on 18 analyst ratings is RM 2.74. This suggests a potential upside of around 27% from the share price of RM 2.20. Consensus estimate allows investors to access the analystsโ target price to assist on the individual stock fair price analysis and investment decision.
Conclusion
Inari Amertron Berhad continues to navigate a challenging technology landscape, balancing short-term headwinds with long-term growth strategies. While the company faced a decline in revenue due to softer product demand, its cost efficiencies and forex gains helped sustain profitability. Looking ahead, Inariโs aggressive expansion in semiconductor packaging technologiesโincluding system-in-package, flip-chip, and 2.5D packagingโpositions it well for the growing demand in AI, data centers, and next-gen mobile devices.
Despite its seven-month share price downtrend, analysts remain optimistic, with a consensus target price of RM 2.70, implying a potential 27% upside. However, from a technical perspective, key support levels suggest that further retracement is possible if market sentiment remains weak. Investors should weigh short-term volatility against Inariโs long-term industry positioning, especially with its strategic expansion and potential government support under the National Semiconductor Strategy. Ultimately, Inari remains a dominant player in Malaysiaโs semiconductor space, making it a stock worth monitoring for future opportunities.