[%uMNo%]
Research by HLIB
Hold - TP RM3.49

"Sacrificing margin for future products"

FY24 core earnings of RM303m (-2% YoY) matched ours but missed street estimate. Proposed fourth interim single tier DPS with 97% payout ratio or 1.4 sen. Inari is well positioned to benefit from the anticipated introduction of AI-capable smartphones and the growth of high bandwidth opto devices in networks and data centres. The group is evaluating partnership opportunities with players moving into Malaysia as a result of geopolitics and US-China trade war. Maintain
HOLD with a lower TP of RM3.49, pegged to 35x CY25f EPS. Although we strongly believe that AI iPhone will be another super cycle, Inari’s risk and reward profile is balanced at current juncture.

Analyst:
Tan J Young
[%BAqA%]

$KLSE-INARI
Research by HLIB
Hold - TP RM3.49

"Sacrificing margin for future products"

FY24 core earnings of RM303m (-2% YoY) matched ours but missed street estimate. Proposed fourth interim single tier DPS with 97% payout ratio or 1.4 sen. Inari is well positioned to benefit from the anticipated introduction of AI-capable smartphones and the growth of high bandwidth opto devices in networks and data centres. The group is evaluating partnership opportunities with players moving into Malaysia as a result of geopolitics and US-China trade war. Maintain
HOLD with a lower TP of RM3.49, pegged to 35x CY25f EPS. Although we strongly believe that AI iPhone will be another super cycle, Inari’s risk and reward profile is balanced at current juncture.

Analyst:
Tan J Young
jytan@hlib.hongleong.com.my