Inari Amertron Berhad

Titan Trading Notes For Thursday [24/4/2025]:

KLCI had a decent rebound back towards the 1501 points region with an overall positive market sentiment today. Daily trading volume settled around the 2.9 billion mark, which is still just average for now.

Main stocks that showed strong buying momentum would be the likes of RTECH, PERTAMA, NATGATE, CIMB, INARI, CLITE, GAMUDA, AXIATA, VS, JCY, KOPI, YTL, DIALOG, and KPJ. All of which were able to sustain their rallies throughout the day on the top volumes list.

RTECH was definitely the star performer for the day as it surged all the way towards the RM 0.27+ regions with huge volume and buying momentum after consolidating and retracing over the past 2 months.

Seems to have formed its dip region around the RM 0.15+ major support levels already. For now if able to sustain above its RM 0.25+ support levels, could continue on towards the RM 0.30+ regions in the coming week.

Will be monitoring RTECH closely here as something could be brewing behind the scenes.

$INARI / 0166 (INARI AMERTRON BERHAD) on the other hand seems to be showing signs of a bottom already as it rebounded well back towards the RM 1.82 regions with good volume and buying momentum today.

This came after its earlier retracement back towards the RM 1.42+ major support levels over the past few weeks. For now as long as able to hold above its RM 1.68+ support on the daily chart, could continue on towards the RM 2+ major resistance levels soon in the coming weeks.

Will be monitoring INARI closely.

$MNHLDG / 0245 (MN HOLDINGS BERHAD) sine retracing back towards the RM 0.83+ major support levels, been recovering very well over the past few weeks, even breaking out towards the RM 1.14+ regions today with good volume and buying momentum,

So far looks quite ripe for a new uptrend here already and if able to sustain above its RM 1.08+ support, could continue to trend back up towards the RM 1.20+ major resistance levels in the coming weeks.

Will be monitoring MNHLDG closely

Titan Trading Notes For Tuesday [15/4/2025]:

KLCI had a decent rebound back towards the 1480 points region with an overall positive market sentiment as the market started with a gap up earlier during the opening. Daily trading volume settled around the 2.9 billion mark, which is still decent here.

Main stocks that showed strong buying momentum would be the likes of MYEG, INARI, EKOVEST, NATGATE, TANCO, IWCITY, ELRIDGE, NEXG, CIMB, PBBANK, YTL, UEMS, GAMUDA, JCY, MRDIY, WCT, and GREATEC. All of which were able to sustain their rallies throughout the day on the top volumes list.

$INARI / 0166 (INARI AMERTRON BERHAD) since retracing all the way back towards the RM 1.42+ major support levels, was able to rebound strongly back towards the RM 1.80+ regions with good volume and buying momentum today after it gapped up in the morning.

So far holding quite well above its RM 1.70+ immediate support, could bounce back further towards the RM 2+ major resistance levels soon in the coming week here. Note that it's still down trending here unless able to breakout from its RM 2.20+ main downtrend resistance.

Will be monitoring INARI closely.

$EKOVEST / 8877 (EKOVEST BERHAD) n the other hand also had a huge breakout from its RM 0.285+ main downtrend resistance and rallied all the way towards the RM 0.33+ regions with good volume and buying momentum.

This came after a 3-4 month long retracement from its RM 0.37+ regions all the way back towards the RM 0.245+ major support levels. For now as long as able to hold above its MR 0.30+ support, could bounce back towards the RM 0.35 - RM 0.37+ resistance levels soon in the coming weeks.

Will be monitoring EKOVEST closely.

Titan Trading Notes For Monday [7/4/2025]:

KLCI retraced back towards the 1504 points region with an overall negative market sentiment here as we saw over 770 counters closing red for the day. Daily trading volume settled around the 1.8 billion mark, which is a new low for 2025. Definitely looking very bearish here.

There were no stocks that showed strong buying momentum on the top volumes list on Friday.

$CIMB / 1023 (CIMB GROUP HOLDINGS BERHAD) since retracing back towards the RM 6.80+ main support levels, been able to show some decent buying support over the past few weeks despite the weak market sentiment, and is hovering around the RM 7+ support levels.

For now still sideways here and needs to breakout from its RM 7.20+ major resistance levels before we can expect further upside. Foreign funds still selling quite heavily here for CIMB and we will need to wait for it to subside first before expecting further strength.

Will be monitoring CIMB closely.

$INARI / 0166 (INARI AMERTRON BERHAD) on the other hand also took quite a huge hit and retraced all the way back towards the RM 1.88 levels on the daily chart here with huge selling activities.

For now could be testing its RM 1.85+ major support levels soon and if unable to hold, could go down further towards the RM 1.75+ main support levels on the weekly charts before we can expect a potential rebound.

Will be monitoring INARI closely.

Market sentiment expected to be very volatile as US effectively started a trade war against everyone, including its allies all over the world. Due to uncertain trade policies, the whole market is in major panic mode now.

That said, I don't think we will be in this stage for a prolonged period as no country will be able to survive this, including the USA. This should be a good opportunity for bargain hunting instead but with caution as we still don't know what kind of cards Donald Trump is keeping.

Expecting the coming few weeks and months to be very volatile and a good opportunity to buy good stocks on the cheap here.

@hokuan net short movements on $INARI / 0166 (INARI AMERTRON BERHAD) is very interesting. as of closing on 3 march 2025, inari has almost 150mil net shorts or close to 4% of nosh.

Excluding the massive volume during the MSCI rebalancing day (28/2) which had ~275mil shares traded, the daily trading volumes for inari in february 2025 ranges from about ~6mil a day to about 20+mil a day. (with about 40mil on the day of QR)

Smell anything here? @larrycfh @b

Titan Trading Notes For Friday [28/2/2025]:

KLCI closed flat around the 1586 points region with an overall positive market sentiment as our market still able to rebound from the past few days of bloodshed that caused chaos throughout. Daily trading volume however remains low around the 2.89 billion mark, not a very good signal to me.

Main stocks that showed strong buying momentum would be the likes of MYEG, ECONBHD, NATGATE, SFPTECH, PMETAL, YTLPOWR, LHI, ARMADA, SCGBHD, and IJM. All of which were able to sustain their rallies throughout the day on the top volumes list.

$INARI / 0166 (INARI AMERTRON BERHAD) although retraced all the way back towards the RM 2.15+ major support levels, was able to show some sign of strength here and rebounded back towards the RM 2.19 regions with good volume and buying momentum.

So far showing signs of a temporary bottom here on the weekly charts with RM 2.15 as the main support. If able to sustain, could rebound back towards the RM 2.30 - RM 2.40+ major resistance levels soon.

Will be monitoring INARI closely.

$JPG / 5323 (JOHOR PLANTATIONS GROUP BERHAD) on the other hand since hitting its RM 1.10+ major support levels, been able to recover quite well here over the past month, even breaking out from its RM 1.24+ main downtrend resistance levels, rallying towards the RM 1.28 levels today.

For now, looking quite strong here and as long as able to sustain above its RM 1.24+ immediate support, could start a brand new uptrend back towards the RM1.30 - RM 1.35+ major resistance levels soon.

Will be monitoring JPG closely here

Sharing from remisier

$INARI / 0166 (INARI AMERTRON BERHAD)

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♨️ Fresh From Oven ♨️

*INARI 2QFY25 briefing keytakes (Zoom)*

*Date: 21 Feb 2025*

*Management: KC Lau (CEO)*

*Key takeaways:*

- 2QFY25 revenue RM349m, NP RM88.1m, NA RM2.8b, EBITDA RM129m
- 3 countries, 11 plants, >6k employees
- Qoq, YOY decreased due to comparatively lower volume of products but RF still quite intact.
- PAT qoq increase on sustained operational efficiency and better forex. Yoy dropped due to lower volume loadings and unfavourable forex losses YTDFY25 of -RM25m vs YTDFY24 of -RM8m
- Market is still paranoid with orders being held back – especially after news of tariff and Deepseek.
- Mix: 2QFY25 RF 68%, Opto 26%, Generic 6%; YTD RF 66%, Opto 28%, Generic 6%
- YTD 1HFY25: Smartphone/mobile 68%, Datacom 14%, Auto 8%, Industrial 5%, Generic 5%
- Smartphone: Hope that the new SE version will capture wider market.
- Datacom: Well versed with Fibre transceiver, moving from 100G to 400G thereafter 800G. Building 400G and 800G. DC needs to continue to invest.
- Automotive & Industrial: Still slow. Opto coupler – used to be at 100% UR, now only at 30-40%.
- No execution issue or -ve surprises based on customers feedback.
- Net cash of RM2.2b; complied by FBM Emas shariah index. Seriously looking at M&A.
- Capex – slowing down spending. FY24 at 157m for machines and equipment, YTD RM20+m

*Operational project updates*

- RF (P13) – higher dense content chip require higher capacity of process engineering (tighter nodes and pitches). Continuous process optimisation to achieve better results with lesser resources. Production scheduled as per customer’s requirement.
- Memory module (P34) – process optimisation – utilisation of internal IMIT machine (qualified) to increase output for die sorting (increased productivity with the volume required). Ongoing HVM with high yield achieved with better throughput (15% lesser time required). Running on high yield now.
- High power LED (P21) – PH – stable volume and US customer qualification done, ready for production. MY – non Auto products – started HVM on a product & building engineering samples – unchanged. MY – Auto products – IATF 16949 certified – in progress of co-developing a few products.
- Edge AI package (P21) – customer 1 – built capability but customer is pending on status. Customer 2 – biz model is project basis, the previous gen volume has slowed down and an improved version coming soon.
- Optoelectronics (Penang + Clark) – MY – further ramping of production (Progressively double the current capacity by 2QCY25 as planned). PH – planned to provide full turnkey solutions as requested by customer (target 3QCY25). PH – CK2.1 ready ahead of schedule and working with customer to load more.
- Optocouplers/sensors (Kunshan + Clark) – ATK ranked as #1 CM recognised by customer. More NPI programs received (exploring to assembly and test other applications). Slow moving on legacy products. At one point was at full UR, now only at 30% UR.
- Power management – Completed the set up transfer of machines earlier than scheduled. Completed all qual lots and sample builds with no major defects and high yield achieved. Undergoing reliability test and target for production by end 2QCY25.
- Automotive – MY – customer transferred testers to Inari for Micro controller chips testing. Device qualification completed and on target for additional production by end 2QCY25.

*Future advancement*

- SiP (flipchip) – for RF – new tech – increased placement accuracy, density and double sided SMT tech. Status: Preparing capability for AI smartphone.
- SiP (wire bond) – for Memory – new tech – multi die stacking, overhang wire bond (challenge on bouncing bump). Status: Preparing capability for higher stack dies. Hope government will support via NSS
- Flip Chip (CSP and BGA) – for AI / Edge AI – new tech – large die flipchip, high bum count. Status: Production line completed and already set up and sent prototype to customer (pending). Relevant to the recent queries received from other customers.
- 2.5D packaging – for Data servers / AI – new tech – multi chip stacking with interposer, fine pitch micro copper pillar. Status: Working with potential customer on product co development.
- Inari MIT operation (customised vision solution provider) – niched focus on AOI – FY25 plan of miniaturisation and die stacking align with the advancement in packaging. In progress on submitting and qualifying machine from external MNC customer. Performing overhaul of older existing machines (hardware and software) to improve OEE.

*Market outlook and biz expansion*

- Fiber optics, global edge AI market and number of smartphone users WW are going uptrend still. Growth min Fiber optics and Global Edge AI market will be higher.
- Penang MY: P34D – 400ksqft totalling to 1.08m – estimated completion by end 25 – for advanced packaging – panel level packaging, wafer bumping, 2.5D advanced packaging, 2D edge AI packaging. Purchased 5 acre land in BKIP (planning) for new products i.e. timing/frequency devices, power devices, optical devices. Expansion in P1, 3, 5 – expansion on wafer sort, wafer processing and final test.
- Yiwu, China – Fab2 – expansion on wafer sort, wafer processing and final test.
- Clark PH – CK2.1 – preparation – full turnkey solutions for fibre transceiver customer.
- Existing manufacturing capacity of 2.15m sqft – expansion plan for up to 4m sqft.

*Q&A*

- TSMC – Intel – Broadcom rumors – customer always want to have fabless concept. Assembly – 2 portion from customer – advanced technology, 2nd portion – current CBU – still high revenue potential.
- Inari follows customer’s preferences in sockets – always in filters. But open to take on new jobs. Cannot comment much on Skywork’s content loss. But not ruling out this possibility?
- RF momentum – no firm visibility for 2H, depends on product demand. But on Mar season, should see marginally better loadings yoy.
- SE version – 6 months visibility – 3 months floating 3 months fix – seeing good chance of better loadings.
- M&A – will follow China +1 SC reconfig. Eyeing on Automotive. Partnership – target to be at new tech area (advanced packaging).
- In house advanced packaging – need to build based on customer’s plan.
- Some customers are looking for cost down (as usual) – for eg 1200 RFT might be reduced to 1100 but on higher efficiency.
- Tariff: So far no news.
- Loadings softening for existing model but new SE might give upside – looking at max UR of 70% from Mar-Jun25. Low visibility to 2H launch in 2025, NPI normally in Jun.
- Capex for power management and automotive – capex for PH already used up USD9m, Penang RM13m. Power management for SiC in PH.
- Memory – invested enough for now in P34. Target revenue: RM100m for FY26.
- SE (previous gen vs current gen) – not much of content density change.
- Industry is consolidating, and Mar quarter should be better qoq but not in a big way.

Titan Weekend Chart Reviews

$INARI / 0166 (INARI AMERTRON BERHAD)

Been retracing and consolidating over the past few months here without much volume and action.

Last Friday, was able to breakout from its RM 3.10+ main downtrend resistance on the daily chart with good volume here.

If able to sustain, could spark a new uptrend back towards the RM 3.50+ regions soon.

Support: RM 3.10, RM 3 areas
Resistance: RM 3.20, RM 3.35, RM 3.50 areas

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by MAYBANK

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by APEX

$INARI / 0166 (INARI AMERTRON BERHAD)
Research Report by KENANGA

$INARI / 0166 (INARI AMERTRON BERHAD)
Research Report by TA

$INARI / 0166 (INARI AMERTRON BERHAD)
Research Report by PBIV

$INARI / 0166 (INARI AMERTRON BERHAD)
Research Report by MAYBANK

$INARI / 0166 (INARI AMERTRON BERHAD)
Research Report by KENANGA

$INARI / 0166 (INARI AMERTRON BERHAD)
Research Report by HLIB

Titan Trading Notes For Friday [8/11/2024]:

After a brief rally from the day before when Trump won the elections, $KLCI retraced back towards the 1623 points region today with an overall bearish market sentiment as we still saw over 640 counters closing red for the day. Daily trading volume settled around the 3.77 billion mark, which is still pretty decent if able to sustain this amount.

Main stocks that showed strong buying momentum would be the likes of 3REN, EKOVEST, INARI, SDCG, SORENTO, TANCO, SCIB, and MKHOP. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$3REN / 0328 (3REN BERHAD) after its strong debut yesterday, was able to resume its buying momentum and broke out all the way towards the RM 0.47 regions, forming a new high once more despite the weak market sentiment here with good volume and buying momentum.

So far looking quite strong here and as long as able to hold above its RM 0.435+ immediate support levels, could continue on towards and beyond the RM 0.47 all time high levels soon for a bullish continuation pattern.

Will be monitoring 3REN closely here as the IPO theme runs strong.

$INARI / 0166 (INARI AMERTRON BERHAD) since breaking out towards the RM 2.90+ regions from the day before, was able to carry forward this buying momentum and rallied all the way towards the RM 3.20+ regions with huge volume and buying momentum today.

This came after a 3-4 month long retracement since breaking out towards the RM 4.01 all time high levels during July. For now looking quite strong here and as long as able to hold above its RM 3.10+ immediate support levels on the daily chart, could continue to trend up towards the RM 3.30 - RM 3.40+ regions soon.

Will be monitoring INARI closely

$HUPSENG / 5024 (HUP SENG INDUSTRIES BERHAD) after announcing a record high earning from its latest QR and declaring 3 cents of dividend, was able to gap up and broke out all the way towards the RM 1.20 regions with good volume and buying momentum today.

Although it faced some selling pressure which saw the stock close back towards the RM 1.14 regions, it's still looking quite good here and as long as able to hold above this region, could trend back up towards the RM 1.20+ regions once more for an uptrend continuation pattern.

Will be monitoring HUPSENG closely

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by PBIV

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by RHB

@terence775 Good old days of following short position 🤣I noticed the abnormal movement of $INARI / 0166 (INARI AMERTRON BERHAD), hence I checked the short selling position, and it has hit the historical high!

$INARI / 0166 (INARI AMERTRON BERHAD) is currently shorted at 1.61% of its total share volume, which is quite high. At today's price of RM2.98, which is considered not that high for Inari, it is interesting to follow the progress of short selling for this share.
Will start a daily update for the net short here!

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by Kenanga
OUTPERFORM – TP RM4.05

" Positioned for AI-Driven Growth”

INARI is positioned to capitalize on the roll-out of AI-capable smartphones and is expanding into China's recovering smartphone market through its YSIC-JV in Yiwu. The increasing demand for high-bandwidth optoelectronic devices in networks and data centers will further boosts the group's prospects. Following its soft FY24 results, we have revised down FY25/FY26 net profit forecasts by 15%/8%. Consequently, our target price has been adjusted to RM4.05 (on an unchanged 35x PER), maintaining our OUTPERFORM
call.

Analyst:
Cheow Ming Liang
cheowml@kenanga.com.my

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by TA
BUY – TP RM4.10

"Looking Forward to the New AI-capable Smartphone”

Following the analyst briefing, we remain optimistic about INARI's outlook, which is underpinned by the resilient earnings contribution from the radio frequency (RF) segment. Management believes that the introduction of a new AI-capable smartphone will be a solid boost to the RF segment. Meanwhile, the group will continue working on new projects as part of its customer diversification efforts. On the other hand, the new plant in China will continue focusing on new product qualifications. Overall, we maintain a Buy call on INARI with an unchanged target price of RM4.10.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by MIDF
NEUTRAL – TP RM3.25

"Keeping abreast of market demand”
Staying relevant with time-to-market concept. We are maintaining our NEUTRAL recommendation for Inari with an unchanged target price of RM3.25 post the briefing session on 4QFY24 results. The RF business will remain the group’s core business, making up around 60% of the total revenue. There is also active effort, since the pandemic, to reduce the dependency on RF business to around 50%. However, we view that in the foreseeable term, RF contribution to the group will stay around current level. To sustainably grow the business, Inari’s profit margin has taken a hit as seen in FY24 financial performances. We view that this should persist in the foreseeable term until better volume loading is observed. The effort to grow the business can also be seen in the capex and R&D commitment.

Analyst:
Foo Chuan Loong, Martin
martin.foo@midf.com.my

$INARI / 0166 (INARI AMERTRON BERHAD)

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by TA
Buy - TP RM4.10

"Results Missed on Higher-Than-Expected Costs"

After revising the earnings forecasts, we reduced the target price from RM4.43 to RM4.10 based on a PE multiple of 33.0x CY25F EPS and a 3% ESG premium. Maintain a Buy call on INARI.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by RHB
Neutral - TP RM3.60

"Looking Forward To a Better FY25"

MaintainNEUTRALandMYR3.60TP(7%upside),c.3%FY25F(Jun)yield. FY24 core earnings of MYR306m (-4.4% YoY) were a slight miss, dragged by margin compression on additional input costs from expansions and new product development. At the current valuation, we believe Inari Amertron’s anticipated FY25 growth has been factored into the price and earnings growth projections, with potential downside in the event of any delays or execution risks. Hence, we prefer to accumulate at lower levels.

Analyst:
Lee Meng Horng
lee.meng.horng@rhbgroup.com

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by Public
Outperform - TP RM4.54

"Broadly In Line"

Stripping out i) net forex loss (RM2m), ii) ESOS expense (RM7m) and iii) writedown of inventory (RM1m) and minority interests (RM-0.4m), Inari Amertron (Inari) registered a lower FY24 core net profit of RM310.2m, down 4.1% YoY. The weaker results were attributed to higher electricity cost and early staging of new products. The results were in line with our full-year expectation but below the street consensus, making up only 92%. Due to our housekeeping changes, we tweak our FY25-27F numbers by 1%. Maintain Outperform call with a new TP of RM4.54 based on 37x FY26 EPS. A 4th DPS of 1.4sen (vs 4QFY23: 2sen) was declared for the quarter, bringing the FY24 DPS to 7.7sen (vs FY23: 8.2sen)

Analyst:
Chong Hoe Leong
chonghoeleong@publicinvestbank.com.my

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by MIDF
Neutral - TP RM3.25

"Subdued Profit Margin in Pursuit of New Business"

• Maintain NEUTRAL with a revised target price of RM3.25 post the 4QFY24 results announcement
• Cumulative FY24 normalised earnings of RM302.1m (-1.9%yoy) came in below our expectation
• Commendable growth in revenue as management introduce new offerings, albeit at the expense of profit margin
• Consistent cash reserve of above the RM2b level may translate into pressing need for M&A

Analyst:
Foo Chuan Loong, Martin
martin.foo@midf.com.my

$INARI / 0166 (INARI AMERTRON BERHAD)
Research by Maybank
Hold - TP RM3.30

"4QFY24: Another tough year"

Inari’s delivered a subdued set of results in 4QFY24 as it grappled with margin compression, primarily from efforts to diversify its customer base. We introduce FY27E and lower our earnings estimates for FY25-26E by 5%-10%. Our TP is also lowered to MYR3.30 (-10sen) as we roll-forward valuations to FY26E. Our TP is now pegged to 29x FY26E PER, at LT mean (from 32x FY25E PER, +0.5SD previously). Risk-reward remains balanced.

Analyst:
Anand Pathmakanthan
anand.pathmakanthan@maybank-ib.com
Arvind Jayaratnam
arvind.jayaratnam@maybank.com

$INARI / 0166 (INARI AMERTRON BERHAD)
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