KUALA LUMPUR (Aug 27): Inari Amertron Bhd (KL:INARI) posted its worst results in 14 years as a fire incident and lower revenue sent earnings at the semiconductor firm down 88% in the recently-ended quarter.
Net profit for the three months ended June 30, 2026 (4QFY206) was RM6.15 million, the lowest since the final quarter of FY2012. The company booked provisions totalling RM41.9 million for write-off of property, plant, equipment, inventories and other costs related to its Philippines plant.
Revenue fell 5.8% year-on-year to RM288.94 million due mainly to comparatively lower loading volume at its mainstay radio frequency business.
A fire broke out on May 10 at Inari’s Plant CK1 in the Philippines, affecting about 12,500 square feet, or about 10% of the plant's total manufacturing space. There were no casualties or injuries.
The affected area remained suspended pending safety inspections and clean-up works, although operations in the non-affected areas have since resumed while Plant CK2, which has about 83,000 square feet of manufacturing space, was not affected and continues to operate normally.
Inari Amertron has submitted an insurance claim amounting to RM30.5 million, but no insurance recovery has been recognised in FY2026 as the claim remains subject to assessment by the insurer and loss adjuster.
“Looking ahead to FY2027, the group expects increased revenues from our expanded product pipeline, particularly in photonics and advanced packaging,” Inari Amertron said, noting opportunities supported by the continued growth of generative artificial intelligence.
The weaker quarterly performance also sent its full financial year to the lowest since FY2014. Net profit fell 42% to RM127.5 million while revenue declined 12% to RM1.19 billion.
Inari Amertron, nevertheless, declared a dividend per share of 1.37 sen payable on Oct 8 this year, bringing total dividend for FY2026 to 4.7 sen, down from the 5.5 sen paid in FY2025.
Inari Amertron's share price closed up 10 sen or 4% to RM2.50 on Thursday, giving the group a market capitalisation of RM9.6 billion ahead of the results announcement.