KUALA LUMPUR (May 24): Hong Leong Investment Bank (HLIB) Research has maintained its “buy” rating on Inari Amertron Bhd (KL:INARI) at RM3.23 with a lower target price of RM3.50 (from RM3.61), pegged to 35x CY2025 earnings per share, and said Inari’s 9MFY2024 core earnings of RM239 million (-8% year-on-year) missed expectations due to weaker-than-expected earnings before interest, taxes, depreciation, and amortisation margin.

In a note on Friday, the research house said Inari is well positioned to benefit from the anticipated introduction of AI-capable smartphones and 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.

“We strongly believe that AI iPhone will be another super cycle,” it said.

HLIB said Inari believes that Malaysia’s semiconductor industry is on a promising trajectory over the next few years in view of the current technology landscape which is shaped by AI and trade-war.

“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,” it said.