Inari Amertron rallies despite Q3 profit plunging 50%

PETALING JAYA: Inari Amertron Bhd shares jumped nearly 13% today despite posting a disappointing set of results for its third quarter ended March 31 (Q3 FY2026).

The stock rose as much as 12.6% or 25 sen to RM2.23 before closing 1 sen lower at RM2.22, valuing the outsourced semiconductor assembly and test (OSAT) services company at RM8.45 billion.

It was the most actively traded stock on Bursa Malaysia with 123.4 million shares changing hands.

Penang-based Inari has been on a tear this year as its shares have risen 28% year to date, buoyed by the rally in technology and artificial intelligence-related stocks.

In its exchange filing yesterday, the company said its net profit dropped almost 50% in Q3 to RM27.98 million from RM55.48 million a year ago while quarterly revenue fell 13.8% to RM265.73 million from RM308.25 million.

The significant drop was mainly due to weaker loading volumes in its radio frequency (RF) segment and realised foreign exchange (forex) losses.

The group declared a third interim dividend of one sen per share, payable on July 10.

Inari said it expects performance to “stay positive but mixed” due to uneven conditions in the semiconductor sector.

It added results may be affected by geopolitical tensions in the Middle East, supply chain disruptions, rising raw material and gold costs, and a weaker US dollar.

In a note today, TA Research downgraded Inari from “buy” to “hold” due to limited upside following its recent share price rally. However, the research house raised its target price (TP) to RM2.07 from RM1.83 previously.

It said excluding the forex loss of RM26.3 million, Inari’s nine-month (9M FY2026) core profit of RM147.7 million came in below expectations but within consensus forecasts, accounting for 64.7% and 72.4% of full-year estimates, respectively.

TA also cut its earnings forecasts for FY2026/FY2027 by 5.4% and 1.9%, respectively, after accounting for lower loadings from the RF segment.

Hong Leong Investment Bank has maintained its “buy” call on the stock with a TP of RM2.20.

The bank expects Inari’s Q4 FY2026 to remain soft before a meaningful recovery in FY2027.

“We believe concerns over continued softness in Inari’s RF segment have largely played out, with sentiment poised to improve from here,” it said in a note today.

Meanwhile, RHB Research has downgraded its call to “neutral” from “buy” but with a higher TP of RM2.10 from RM2.01 previously.

It noted that following a sharp 32% share price appreciation, the current risk-reward proposition appears balanced.

“The anticipated FY2027F earnings rebound – underpinned by RF business recovery and sustained optoelectronics growth – is largely built into the rally, while FY2026F is expected to remain muted,” it said.

المصدر: Free Malaysia Today