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Inari Amertron may continue to face headwinds in its smartphone radio frequency segment, which accounts for 61% of revenue, due to a weaker U.S. dollar, rising memory and raw material costs that are squeezing margins, Public Investment Bank analyst Chong Hoe Leong says in a note. Revenue for 2H is expected to fall around 20% sequentially due to seasonality and forex headwinds, he says. To offset the weakness, management is shifting focus toward its datacom photonics and power management segments, where the company expects stronger demand in FY 2027-FY 2028, he adds. Public IB cuts Inari's target price to 1.48 ringgit from 1.68 ringgit, while maintaining a neutral rating on the stock. Shares are unchanged at 1.31 ringgit.
No income distribution is proposed for the current quarter ended 31 March 2023 (Q1 2023) as
moving forward, subject to the financial performance of the REIT, the Manager intends to make
distributions to the unitholders of Hektar REIT on a semi-annual basisfor each six-month period
ending 30 June and 31 December each year,