Broker Name: CGS International
Date of Report: December 10, 2025
Excerpt from CGS International report.
Report Summary
- Inari-Amertron Bhd’s outlook for FY26 is mixed, with ongoing weakness in its radio frequency (RF) segment but growth prospects in datacom and power management divisions.
- The company has doubled its datacom plant capacity to meet demand for optical transceivers and completed a silicon carbide line for AI chip power modules.
- Despite losing some RF assembly market share, Inari retains a dominant position in higher-margin final RF component testing for its key US customer.
- Future growth drivers include the AI smartphone replacement cycle, higher RF content in smartphones, and potential market share gains for its key US client.
- The stock rating has been upgraded to Hold with a higher target price of RM1.85, based on 23.2x FY27F P/E, reflecting moderate earnings growth and solid cost controls.
- ESG practices are highlighted as a strength, with active local sourcing, automation, and strong compliance with labour and business standards.
- Key risks include further RF assembly market share loss, weak new product ramp-up, and currency fluctuations.
- Financials show stable revenue and margins, strong free cash flow, and a high dividend payout ratio.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
