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Inari Amertron Has Shown Outstanding Profitable Growth

Background

Inari Amertron Berhad is Malaysia’s biggest semiconductor company by revenue.

This is focused on outsourcing business of assembly and test facilities (OSAT) for semiconductor clients and includes supplying radio frequency components for mobile phones and optoelectronics and fiber optics-related components.

Business Description

INRI is Malaysia’s biggest semiconductor company by revenue, and is focused on outsourcing of assembly and test facilities (OSAT) for semiconductor clients’ radio frequency (RF) components for mobiles, optoelectronic components and fiber-optics related components.

The company is currently consolidating, automating and expanding its manufacturing and testing facilities which will boost efficiency and profits.

Its major customer, Broadcom* (AVGO US), which is estimated to account for at least half of sales, will launch new smartphone models in September Longer term, when 5G networks ramp-up over the coming 1-2 years, they will require more RF content in smartphones, and INRI is well positioned to take advantage of this.

A key growing customer for fiber optics is OSRAM (OSR GR), the major German lighting company with global presence, spun off from Siemens. The main products in optoelectronics for INRI are iris scanner components for facial recognition (biometric authentication) for smart devices.

Leadership

Y.A.M. Tengku Puteri Seri Kemala Pahang Tengku Hajjah Aishah, DK(II), SIMP has been the Independent Chairperson at Inari Amertron since 2011.  She received a Diploma in Business Administration from Bournemouth University, UK.

Lau Kean Cheong has served as an Executive Director and Group Chief Executive Officer since 2011. Mr. Lau has a Diploma in Electronics Engineering from Tunku Abdul Rahman College in Malaysia and a Master’s in Science in Information Technology for Manufacturers from the University of Warwick, UK.

World Class Benchmarking

Inari Amertron has been outstanding on Profitable Growth and ranked in the top 10% for the whole time period. In the past 12 months, INRI ranked in the top 112 out of 1,120 medium-sized Information Technology companies worldwide.

Profitability is the company’s main strength and has ranked at #1 for the whole time period. Growth has not been as strong and fell to #5 from #4 in the past 12 months.

Asset utilization has shown a declining trend but still ranked above average in the most recent period. Profit margin has improved and ranked at #1 since 2017.

Sales growth has been in a downward trend but improved to #3 from #5 in the past 12 months. Margin change has fluctuated and fell below average to #6 in the most recent period.

 

*In April 2018, Broadcom re-domiciled from Singapore to the United States.

 


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