Market backdrop
Kuala Lumpur’s stock market opened on a buoyant note on 16 January, with the FTSE Bursa Malaysia KLCI gaining 0.2 % to 1,717.86. The rally was buoyed by a recovery on Wall Street and positive sentiment ahead of the fourth‑quarter 2025 gross domestic product estimate. Turnover on the exchange reached RM105 million, signalling heightened investor activity.
The broader market benefited from a surge in technology shares, driven in part by optimism over artificial‑intelligence (AI) applications. Analysts at TA Research projected that the global semiconductor market would grow by more than 25 % in 2026, approaching US$1 trillion in value. The forecast highlights AI and high‑performance computing as the key growth engines for memory and logic‑chip segments.
INARI AMERTRON’s positioning
INARI AMERTRON Berhad, listed on the Bursa Malaysia main board under the symbol INARI (0166), is a producer of electronic components and assemblies serving automotive, aviation and telecommunications customers worldwide. The company has positioned itself at the intersection of these high‑growth sectors, leveraging its engineering capabilities to develop new products and technologies.
Recent performance
On 14 January, the shares closed at RM1.88, up 0.53 % from the previous day. The 52‑week range is currently between RM1.42 and RM2.77, placing the stock roughly 25 % above its low and 32 % below its high. With a market capitalisation of RM7.15 billion and a price‑to‑earnings ratio of 29.07, INARI trades at a premium that reflects investors’ expectations of continued expansion in demand for its components.
The company’s earnings, while modest, have shown resilience. The 2025 results were buoyed by strong orders from automotive and aviation customers, and the company announced a strategic partnership to accelerate the deployment of next‑generation power‑management solutions. These moves are intended to capture a larger share of the high‑performance computing segment that is expected to grow significantly in 2026.
Strategic outlook
The Malaysian government’s 13th National Development Plan (13MP) and the Visit Malaysia 2026 campaign are setting the stage for a wave of infrastructure and technology investment. INARI’s focus on high‑performance and high‑reliability components aligns well with the projected demand for AI‑enabled systems and advanced avionics. In addition, the company’s global sales network, anchored in Kuala Lumpur but extended through multiple sales offices worldwide, positions it to capitalize on international market trends.
The company’s management has indicated plans to expand its research and development budget to support the creation of new AI‑compatible modules. By investing in advanced semiconductor fabrication techniques and collaborating with leading global suppliers, INARI aims to secure a competitive advantage as the industry moves toward more sophisticated chip architectures.
Investor perspective
For investors, INARI offers exposure to a diversified technology portfolio that spans automotive, aviation and telecommunications. The stock’s performance is currently influenced by macro‑level sentiment in the technology sector, but its operational fundamentals suggest that it could benefit from the expected 25 % growth in the global semiconductor market in 2026.
Key points to monitor include:
| Indicator | Current Status | Implication |
|---|---|---|
| Price | RM1.88 (2026‑01‑14) | Near 1‑year low |
| PE Ratio | 29.07 | Valuation within tech‑sector range |
| 52‑week range | 1.42 – 2.77 | Potential upside if price re‑aligns with earnings |
| Market Cap | RM7.15 bn | Medium‑cap, providing liquidity |
| Strategic moves | R&D expansion, AI‑compatible modules | Positioning for future demand |
The company’s recent share price rise, albeit modest, reflects the broader trend of technology stocks gaining traction amid AI optimism. Should INARI successfully launch its next‑generation products, the stock could capture additional upside, particularly if global semiconductor demand accelerates as forecasted.
Conclusion
INARI AMERTRON Berhad is strategically situated to benefit from the projected expansion of the global semiconductor market and the increasing demand for AI‑enabled electronics. While the stock is currently trading near a one‑year low, its robust market position, diversified customer base and ongoing investment in innovation provide a solid foundation for future growth. Investors observing the technology sector should consider INARI as a potential contributor to a portfolio that seeks exposure to high‑growth engineering and manufacturing businesses in Malaysia and beyond.
