PETALING JAYA: AmInvestment Bank Research foresees a recovery in Inari Amertron Bhd
’s growth over the longer term, driven by increasing content requirements for radio frequency (RF) filters.
This is especially given that higher complexity technology is needed for new generations of 5G-and-beyond devices and optical transceivers used in servers, boosted by the boom in artificial intelligence sector.
“The stock currently trades at an attractive financial year 2025 (FY25) price-earnings (PE) multiple of 27 times versus its three-year peak of over 30 times.
“We maintain a ‘buy’ call on Inari with an unchanged fair value of RM3.86, based on FY25 PE of 31 times – at parity to its five-year median on the back of improving sector sentiments,” it said in a report.
Meanwhile, Affin Hwang Investment Bank Research believes Inari would likely encounter earnings volatility over the near term because of weak end-demand for its customer’s smartphones in select markets.
However, it reckoned sector sentiment remains strong and may lend support to the stock price. It has maintained a “buy” call with a lower target price of RM3.89, based on 35 times 2025 earnings per share.
“Key re-rating catalysts for the stock lies on contribution from its new China factory via its 54%-owned joint venture that is undergoing qualification.
“Any earnings surprise from its memory customer as well its power module products would be a positive catalyst also aiding a valuation re-rating as single-customer risk is reduced,” it said.
