KUALA LUMPUR (Nov 27): Inari Amertron Bhd’s (KL:INARI) net profit jumped 113.5% for its first quarter, supported mainly by favourable movements in foreign exchange rates.

Net profit for the outsourced semiconductor assembly and test player was RM51.5 million in the quarter ended Sept 30, 2025 (1QFY2026) versus RM24.1 million a year earlier, according to an exchange filing.

However, quarterly revenue fell 16% to RM325.8 million compared to RM388 million in the previous year, primarily due to lower loading volume across all business segments, where demand slowed down and fewer customer orders were handled.

The group declared a first interim dividend of 1.33 sen per share, payable on Jan 8, 2026.

Inari said the semiconductor sector continues to navigate a challenging macroeconomic backdrop marked by tariff concerns, geopolitical tensions and volatile exchange rates.

“For Inari, we continue to see strength in data communications, flat growth in smartphone demand and softness in our industrial semiconductor segment,” said the group in a filing.

It also sees global supply chain realignment driven by US tariff policies, along with deflationary pressure and increased onshoring of Chinese manufacturing, which would continue to weigh on its margins.

For the rest of the fiscal year, Inari said it remains cautiously optimistic as it focuses on developing new partnerships and expanding its advanced packaging capabilities to tap growth from generative artificial intelligence.

Its proposed joint acquisition of LED packaging manufacturer Lumileds Holding BV with Sanan Optoelectronics is still pending approval from foreign authorities and expected to be completed by the end of 3QFY2026.

Shares of Inari closed flat at RM2.38 on Thursday, valuing the group at RM9.04 billion.