Inari Amertron Bhd, Malaysian Resources Corporation Bhd, Genting Plantations Bhd, and Axis REIT Bhd are the focus of a detailed local equities briefing that examines strategic shifts, project pipelines, earnings trajectories, and policy tailwinds shaping the near- to mid-term outlook. The report highlights Inari Amertron’s push into advanced packaging to complement its flagship RF business, MRCB’s milestone joint ventures that expand its project pipeline and long-term earnings, Genting Plantations’ planned land divestment and replanting considerations, and Axis REIT’s continued growth through newly completed acquisitions and redeveloped properties. Across these names, the overarching themes are expansion through technology, disciplined capital allocation, and the influence of national policy initiatives on sector-specific performance.
Inari Amertron Bhd: Advancing into Advanced Packaging and AI-Ready Solutions
Inari Amertron Bhd remains a key name in the regional semiconductor outsourcing sector, with a strategically important emphasis on advancing from its established radio frequency (RF) and System-in-Package (SiP) capabilities toward more sophisticated packaging platforms. The latest market commentary reiterates an investment stance that remains Buy, with a target price set at RM3.40. This valuation is anchored in a forward-looking framework that centers on robust secular demand for cutting-edge semiconductor solutions driven by artificial intelligence, high-performance computing, networking, and smart devices. The core premise is that Inari’s long-term growth will rely not only on its core RF operations but also on its capacity to deploy and mature next-generation packaging technologies.
A recent site visit to Inari Amertron’s Penang P13 plant provided detailed visibility into its advanced packaging roadmap. The technology roadmap includes flip-chip chip-scale packages (CSPs), flip-chip ball grid arrays (BGAs), and 2.5D/3D stacked packaging. These platforms offer ultra-high performance, enhanced memory bandwidth, and heterogeneous integration capabilities—attributes increasingly demanded by AI accelerators, server, networking equipment, and sophisticated industrial devices. The strategic pivot toward these advanced packaging technologies positions Inari to cater to a more demanding, high-value subset of the semiconductor supply chain, where performance-to-power ratios and integration density are critical differentiators.
The adoption of advanced packaging is framed as a high-barrier, capital-intensive, and technically sophisticated undertaking. It requires not only sophisticated process know-how but also a supportive ecosystem and a robust, committed customer base. The report notes that this combination constitutes a meaningful barrier to new entrants and protects incumbents with established capabilities. Nonetheless, the potential market opportunity is substantial: a projected compound annual growth rate (CAGR) of approximately 11% from 2023 to 2029, according to a leading market analysis group. This growth expectation underpins the strategic rationale for Inari’s transition into advanced packaging modalities, as it seeks to capitalize on growing demand for AI-enabled and data-centric applications across data centers, 5G/telecom networks, and industrial IoT ecosystems.
To execute this roadmap successfully, Inari is reportedly collaborating closely with technology partners and preparing to commercialize its new product pipelines in the upcoming quarters. This emphasis on collaboration helps mitigate technology risk and accelerates time-to-market for next-generation packaging solutions. It also aligns with Inari’s established competencies as a premier outsourced semiconductor assembly and test (OSAT) provider, reinforcing the dual objective of maintaining near-term revenue stability while pursuing longer-term, higher-margin growth opportunities. The strategic initiative benefits from a solid base of existing capabilities and a well-diversified customer portfolio, which contribute to a steadier risk profile as the company transitions into advanced packaging.
The broader policy environment in Malaysia further strengthens Inari’s strategic positioning. The national semiconductor strategy, introduced in 2024, aims to bolster high-value semiconductor manufacturing and build a more resilient, innovation-driven ecosystem. The plan comes with a substantial fiscal package, including RM25 billion in fiscal support and RM3 billion earmarked specifically for capital grants, research and development (R&D), and modernization. For a significant player like Inari, this policy framework translates into potential cost advantages, improved access to funding for capital-intensive upgrades, and enhanced competitiveness through broader domestic support. Inari’s role as a key outsourced assembly and test (OSAT) provider places it at a strategic advantage to benefit from policy-driven incentives and favorable operating conditions in Malaysia’s evolving semiconductor landscape.
Taken together, Inari’s advanced packaging strategy, the strength of its existing platform, and the macro policy environment provide a compelling, if complex, growth narrative. The evaluation includes a careful assessment of the risk-reward balance. On one hand, the de-risking of the investment thesis rests on the company’s ability to scale advanced packaging capabilities, forge reliable partnerships, and manage the capital expenditure associated with state-of-the-art packaging processes. On the other hand, the upside rests on continued demand from AI, data center, and edge computing segments, along with Inari’s capacity to competitively position itself in a market characterized by rapid technology evolution and potential cyclicality.
From a valuation perspective, the investment thesis is grounded in a multiple framework: a forward price-earnings (PE) multiple of 35 times for 2025, and an ex-cash forward multiple of 24.8 times, reflecting a premium relative to the five-year forward mean. The multiple is cited as being about 1 standard deviation above the five-year mean forward, consistent with a more optimistic growth trajectory and a constructive demand backdrop for high-end packaging solutions. The commentary also notes a negative derating or cyclical bottom scenario that would temper risk, thereby presenting a balanced risk-reward profile for an entry point at current price levels. Inari’s ability to deliver on the advanced packaging roadmap, maintain a strong customer base, and align with Malaysia’s semiconductor strategy are all critical levers that will shape the stock’s trajectory over the next several quarters.
For investors, the comprehensive case involves several layers: execution risk in scaling advanced packaging, costs associated with new technology platforms, potential supply chain dynamics, and the extent to which policy incentives translate into real-world competitive advantages. Inari’s ongoing collaborations with technology partners and the anticipated commercialization of new packaging pipelines in the near term are central to sustaining growth momentum. Additionally, the company’s ability to optimize costs while expanding capacity will be a key determinant of profitability as the advanced packaging business scales. In summary, Inari Amertron Bhd is positioned to benefit from a multi-year technology upgrade cycle, supported by favorable national policy directions and a robust demand environment for AI-enabled semiconductors, with the potential for meaningful earnings uplift as the new packaging platforms reach scale.
Malaysian Resources Corporation Bhd: Building Long-Term Growth Through Strategic Projects and Partnerships
Malaysian Resources Corporation Bhd (MRCB) presents a compelling case for investors focused on long-horizon value creation through a diversified project portfolio and recurring revenue streams tied to large-scale developments. The analysis emphasizes a target price of 67 sen, with a Buy rating, anchored in management expectations and a replenishment strategy that leverages recent win announcements and joint venture activities. The key elements of the narrative revolve around Hospital Putra in Melaka and the Ipoh Sentral transit-oriented development (TOD) project, both of which are integral to MRCB’s growth trajectory for FY24/25 and beyond.
The latest earnings framework maintains its estimates as the newly announced joint venture (JV) for Hospital Putra and the Ipoh Sentral TOD project is deemed largely in line with expectations. The projects are viewed as aligned with MRCB’s replenishment strategy, reinforcing confidence in the company’s ability to sustain a robust project pipeline. Importantly, these ventures are not expected to materially impact MRCB’s net assets or earnings for the 2024/25 financial year, according to the analysis. This implies a measured approach to recognizing earnings, with Hospital Putra’s revenue recognition anticipated to occur progressively as the project reaches significant milestones, and Ipoh Sentral’s phased development schedule pointing to earnings contributions starting from FY26 and extending across a 20-year horizon.
The pricing framework remains anchored to a forward-looking metric: the target price of 67 sen is pegged to a historical forward price-to-book ratio (P/B) of +1 standard deviation, at 0.64 times, on the group’s estimated FY25F book value per share (BVPS) of RM1.04. This approach reflects a disciplined assessment of MRCB’s balance sheet strength, asset quality, and long-run earning power. The 0.64x forward P/B multiple positions the stock at a premium to book value, reflecting investor confidence in the value creation potential embedded in the pipeline and the long-term visibility of earnings from high-profile projects.
The new JV arrangement adds a concrete illustration of MRCB’s strategic direction. On January 24, MRCB Land Sdn Bhd (MLSB), a wholly owned subsidiary of MRCB, entered into a joint venture and shareholders’ agreement with PM Multilink Sdn Bhd (PMM), a subsidiary of Melaka Corporation. The JV, through Majestic Quest Sdn Bhd, is structured as 70% MLSB and 30% PMM, and its objective is to develop Hospital Putra in Melaka Tengah. The gross development cost (GDC) for Phase 1 is estimated at RM520 million. This venture underscores MRCB’s capacity to mobilize partnerships and leverage public-private collaboration to accelerate project delivery and value creation. While the initial phase involves significant capital commitments, the long-term implications point to a steady pipeline of outcomes that could support earnings recognition over multiple years, consistent with the company’s replenishment strategy.
Beyond Hospital Putra, the Ipoh Sentral TOD project represents another pillar of MRCB’s growth narrative. TOD developments are widely regarded as catalysts for urban regeneration, transportation connectivity, and long-term land value appreciation. Ipoh Sentral’s development schedule is phased, with early milestones expected to unlock new revenue streams in the midterm and beyond. The prospect of earnings contributions beginning in FY26 and extending up to two decades adds a meaningful degree of predictability to MRCB’s earnings trajectory. Investors will be watching for milestones related to planning approvals, financing arrangements, and the pace of construction, all of which will influence the timing and magnitude of earnings contributions.
The 2024/25 period also brings attention to additional operational dynamics within MRCB’s portfolio. The company’s replenishment strategy gains reinforcement from these new ventures, supporting revenue diversification beyond traditional property development activities. While the immediate impact on net assets or earnings may be limited, the longer-term effect is a richer, more resilient project pipeline that could translate into sustainable, long-run earnings growth. The 67 sen target price implies a positive view on the company’s ability to translate project momentum into shareholder value, with the valuation anchored by the 0.64x forward P/B benchmark and the expectation of stable, growth-oriented earnings across a 12- to 20-year horizon.
Investors should weigh several risk factors as part of MRCB’s investment thesis. Execution risk remains inherent in large-scale public-private partnerships and TOD developments, particularly given potential changes in regulatory environments, financing conditions, and project timelines. The quality of project management, cost control, and the ability to maintain aligned incentives among JV partners will be crucial in determining the speed and profitability of earnings recognition. Market conditions for the property and construction sectors, including demand for office space, residential components, and infrastructure-linked developments, could influence the pace of project realization. However, with a diversified portfolio, a growing pipeline, and a proven track record in joint ventures, MRCB’s strategy is designed to provide resilience and long-term value creation for shareholders.
In sum, the Malaysian Resources Corporation Bhd story emphasizes disciplined capital allocation to high-potential projects, a replenishment strategy anchored in strategic partnerships, and a longer-term earnings outlook anchored to Hospital Putra and Ipoh Sentral TOD. The stock’s Buy rating and 67 sen target reflect confidence in the company’s ability to convert a multifaceted project portfolio into recurring, sustainable value across multiple years. For investors seeking exposure to infrastructure-driven growth within Malaysia’s urban development landscape, MRCB represents a well-positioned name with meaningful upside potential, supported by a credible execution plan and a diversified asset pipeline.
Genting Plantations Bhd: Land Disposition and Replanting Efforts as a Catalyst for Earnings
Genting Plantations Bhd presents a nuanced case in which near-term earnings are expected to benefit from a strategic asset sale, while ongoing agricultural activities and asset management considerations shape longer-term profitability. PublicInvest Research highlighted a targeted RM6.81 price point with an Outperform rating, driven by a proposed disposal of three parcels of agricultural land totaling 528 acres in Melaka Tengah to a Scientex Bhd subsidiary for RM333.8 million, or RM14.50 per square foot. The proposed sale is projected to produce a one-off gain of approximately RM284.9 million, equivalent to about 32 sen per share in earnings for FY25, assuming the completion and related tax considerations align with expectations. The earnings forecast for FY25 remains unchanged pending the completion of the land sale, underscoring the near-term nature of the gain and the potential for an earnings uplift once the transaction closes.
The land under consideration has a long history, having been acquired in 1981 for an original investment cost of RM2.1 million, calculated at a rate of nine sen per square foot. The sale is forecast to generate a highly favorable gain net of tax and related expenses, contributing a substantial one-off accrual to the year in which the sale completes—anticipated to be in the second half of 2025. The market narrative emphasizes the price realization and the timing of this gain as a meaningful, near-term driver of profitability, potentially ahead of any replanting-related cost considerations.
In addition to the sale-related dynamics, Genting Plantations is expected to realize cost savings associated with replanting activities. It is noted that replanting costs are estimated at RM6 million, with the added nuance that the oil palm trees on the subject land are aging and approaching replanting thresholds. This factor introduces a future cost optimization opportunity; replanting can improve plantation productivity and long-term yield potential, which could contribute positively to operating margins and cash flows in the medium to long term. The juxtaposition of a significant one-off sale gain and the prospect of controlled or optimized replanting costs frames the investment thesis in terms of both immediate earnings impact and longer-term agricultural productivity.
From a strategic perspective, the disposal aligns with an ongoing trend among plantation groups to monetize non-core land assets, especially where land is not integral to the company’s core plantation operations. The sale may also stabilize balance sheet metrics by reducing agricultural land holdings, potentially reallocating capital to more productive or higher-margin assets, or to debt reduction and working capital optimization. The net effect on profitability hinges on the precise timing of the transaction, the extent of associated taxes and transaction costs, and how Genting Plantations deploy the proceeds—whether to strengthen liquidity, accelerate expansion into related lines of business, or fund ongoing replanting initiatives that could contribute to future yield improvements.
Investors should also monitor the broader market conditions affecting the palm oil sector, including commodity price volatility, crop yields, and export demand dynamics. While the immediate catalyst is the land sale, the longer-term performance of Genting Plantations will still depend on agricultural productivity, cost management, and capital discipline in pursuing growth opportunities within its plantation portfolio. The anticipated one-off gain enhances FY25 earnings visibility in the near term, but a balanced assessment should consider the sustainability of ongoing earnings drivers beyond the impact of the land sale.
Overall, Genting Plantations Bhd’s near-term outlook benefits from a strategic land disposal that delivers a sizable one-off gain, while the potential efficiency gains from replanting support longer-term profitability. The stock’s valuation, anchored by a RM6.81 target and an Outperform stance, reflects a constructive assessment of the blended effect of asset monetization and agricultural optimization. As the company navigates the timeline to completion and recognizes the associated gains in FY25, investors should weigh the near-term earnings catalyst against the longer-term earnings trajectory driven by plantation productivity, cost management, and capital allocation decisions.
Axis REIT Bhd: Portfolio Growth Fueled by Acquisitions and Redevelopment
Axis REIT Bhd stands out as a REIT with a momentum profile that blends the completion of high-value acquisitions and the redevelopment of key properties with a clear path to earnings progression. The research outlook presents a Buy rating with a target price of RM2.08, underpinned by a forecast for continued double-digit earnings growth in FY25 guided by the full-year contributions from newly acquired assets and the ongoing performance of Axis Mega Distribution Centre 2 (AMDC2), a redevelopment project that expands the portfolio’s distribution capabilities and occupancy profile.
In the fourth quarter of the financial year ended 2024, Axis REIT posted core profit of RM42.4 million, representing a 3% quarter-on-quarter increase and an 11% year-on-year rise, culminating in FY24 earnings of RM163 million. The quarterly revenue growth of 9% was driven by the contributions of newly acquired properties, the operational performance of AMDC2, and positive rental reversions across the portfolio. These factors collectively underscore Axis REIT’s ability to sustain growth through a combination of acquisitions and active property management.
The earnings framework indicates that Axis REIT’s FY24 revenue rose 12% year-on-year, supported by the full-year impact of Bukit Raja Distribution Centre 2 (completed in August 2023), positive rental reversions, and the completion of seven acquisitions totaling RM719 million. The acquisitions and redevelopments have contributed to a more diversified portfolio, with an emphasis on distribution and logistics assets that align with secular e-commerce and supply chain resilience trends. The combination of a more resilient income stream and a broader asset base supports the expectation of continued earnings growth in the coming years.
In response to these developments, the research coverage maintains its earnings forecasts for Axis REIT and introduces a FY27 earnings forecast of RM214 million. The addition of a longer-horizon forecast reflects confidence in the portfolio’s ability to deliver sustained cash flows driven by a mix of long-term leases, positive rental reversions, and a pipeline of future acquisitions that can be integrated into the existing asset base. The AMDC2 redevelopment is particularly noteworthy as it exemplifies Axis REIT’s strategy to optimize and modernize its existing assets, unlocking improved occupancy and rental performance in a sector characterized by ongoing demand for efficient distribution facilities.
From a broader perspective, Axis REIT’s strategy illustrates how a well-managed REIT can leverage acquisitions and redevelopment projects to elevate its portfolio quality, occupancy, and yield. The company’s exposure to the logistics and distribution segment positions it to benefit from resilient demand patterns associated with e-commerce and regional supply chains, even amidst macroeconomic fluctuations. The emphasis on new acquisitions, redeveloped properties, and a disciplined capital structure is central to the continuing earnings trajectory and long-term value creation for shareholders.
In evaluating Axis REIT’s outlook, investors should consider several risk factors. Real estate cycles, interest rate movements, and refinancing risk can influence valuations and cash flow stability. Leasing market dynamics, tenant diversification, and lease expiration profiles will shape occupancy and rental growth. However, with a diversified asset base, active portfolio management, and a track record of executing acquisitions and redevelopment projects, Axis REIT presents a compelling opportunity for investors seeking exposure to a logistics- and distribution-focused REIT with potential for continued earnings acceleration.
Conclusion
The four local equities examined—Inari Amertron Bhd, Malaysian Resources Corporation Bhd, Genting Plantations Bhd, and Axis REIT Bhd—illustrate a spectrum of growth trajectories anchored in technology leadership, strategic project execution, asset monetization, and diversified real estate growth. Inari Amertron’s foray into advanced packaging technologies—such as flip-chip CSPs, flip-chip BGAs, and 2.5D/3D stacking—signals a strategic upgrade aimed at capturing high-value demand from AI, servers, networks, and smart devices. This expansion is underpinned by Malaysia’s National Semiconductor Strategy and substantial fiscal support, reinforcing the potential to translate cutting-edge capabilities into sustained competitive advantage and earnings growth. The valuation framework uses forward multiples that reflect a growth premium while acknowledging the risks inherent in capital-intensive technology transitions.
Malaysian Resources Corporation Bhd is advancing its growth through a robust replenishment strategy anchored in high-profile joint ventures, such as the Hospital Putra project in Melaka and the Ipoh Sentral TOD development. The joint venture structure and the staged earnings recognition plan indicate disciplined capital deployment and a long-term earnings horizon that could yield meaningful returns beyond FY24/25. The target price and P/B-based valuation reflect optimism about the ability to translate a diversified project pipeline into durable shareholder value, albeit with execution and market risk considerations inherent to large-scale infrastructure and urban development projects.
Genting Plantations Bhd’s near-term catalysts are centered on a one-off sale of land in Melaka Tengah that is expected to generate a substantial gain in FY25, complemented by potential cost savings from replanting activities. The sale represents a strategic monetization of non-core assets, with a near-term uplift in earnings that will be tempered by the timing and realization of the sale and any associated tax considerations. Long-term profitability would benefit from improved plantation productivity through prudent replanting, ensuring that the asset base continues to deliver competitive yields and cost efficiencies over time.
Axis REIT Bhd delivers a balanced growth narrative driven by acquisitions and asset redevelopment, especially the AMDC2 project, which together support double-digit earnings growth for FY25. The company’s performance in FY24 demonstrates the value of a diversified, logistics-oriented portfolio and a proactive asset management approach that optimizes occupancy and rental income. The forward-looking earnings projection through FY27 signals continued confidence in Axis REIT’s ability to translate portfolio quality into consistent cash flows for shareholders.
Collectively, these stories underscore a shared theme of strategic capital allocation, disciplined execution, and a favorable policy and market backdrop that supports high-value growth in Malaysia’s local equities landscape. Investors are advised to monitor project milestones, timing of asset sales, integration of acquisitions, and the evolution of the semiconductor and infrastructure sectors as they assess the potential for sustained value creation across these four names. The coming quarters are expected to reveal how effectively each company leverages its strategic initiatives to translate near-term catalysts into durable, long-term shareholder returns.
