Inari Amertron starts FY20 on weak note as net profit falls 21%

TheEdge Tue, Nov 26, 2019 07:53pm - 4 years View Original


KUALA LUMPUR (Nov 26): Semiconductor player Inari Amertron Bhd’s net profit fell 20.7% to RM47.73 million or 1.5 sen per share in its first quarter ended Sept 30, 2019 (1QFY20), from RM60.16 million or 1.91 sen per share in the year-ago quarter.

Inari in its filing to the stock exchange today said the weaker profitability was mainly due to changes in product mix, higher depreciation cost, lower foreign exchange gain and an increase in taxation.

Revenue contracted 2.8% to RM316.61 million from RM325.72 million in 1QFY19, due to reduced optoelectronic sales volume.

Nonetheless, the group proposed a first single tier interim dividend of 1.3 sen per share, payable on Jan 9, 2020.

Based on guidance from the group’s current customer forecasts, Inari said business for its first half of FY20 is expected to improve.

However, the group warned that the short-term outlook remains cloudy, due to ongoing geo-political events such as the US-China trade war.

“In the event no major fallouts happen, the group remains cautiously optimistic in earnings for FY20. The group will continue to expand our production capacity and invest in test/assembly technologies in areas of improvement, to drive better margins and revenue,” it said.

Shares of Inari closed one sen higher at RM1.95 today, for a market capitalisation of RM6.22 billion.

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