Inari Amertron 4Q profit down 33%; firm declares 1.1 sen dividend

TheEdge Thu, Aug 29, 2019 10:31am - 4 years View Original


KUALA LUMPUR: Inari Amertron Bhd’s net profit fell 33% to RM38.29 million for the final financial quarter ended June 30 (4QFY19), from RM57.1 million a year ago. However, the semiconductor maker expects its performance to improve, at least for the first half (1H) of current financial year ending June 30, 2020 (FY20).

It declared the fourth interim dividend of 1.1 sen per share in respect of FY19. This brings its total payout for FY19 to 5.2 sen per share, which is lower than the 8.4 sen declared in FY18.

Its revenue dropped 10% to RM270.67 million in 4QFY19 against RM301.1 million a year ago. Earnings per share (EPS) fell to 1.19 sen from 1.8 sen previously.

The lower net profit was partly due to some RM23.7 million being booked in as disposal gain in the previous corresponding quarter. On top of that Inari Amertron noted in the filing with Bursa Malaysia that lower revenue, higher depreciation costs and changes in product mix also ate into its profitability.

For FY19, Inari Amertron reported yesterday an annual net profit of RM191.7 million, down 23% from RM249.26 million in the previous financial year. Revenue was also lower at RM1.152 billion against RM1.376 billion previously. EPS shrank to 6.06 sen for FY19 from 8.08 sen the year before.

Looking forward, using guidance from the group’s current customer forecasts, Inari Amertron said in the financial results that the business for 1HFY20 is expected to improve. “However, the short-term outlook is very much clouded by geo-political events like the ongoing US-China trade war and Brexit.

“In the event no major fallouts happen, the group can look forward to higher volumes for our existing and new products for FY20,” it commented.

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