Inari Amertron

Re: Inari Amertron

Postby winston » Thu Mar 05, 2015 11:10 am

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Insider Asia’s Stock Of The Day: Inari

PRIMARILY an electronics manufacturing services (EMS) provider, Inari (Fundamental 2.7/3, Valuation: 2.1/3) is involved in back-end semiconductor packaging including back-end wafer processing, package assembly and radio frequency (RF) final testing.

The company expanded into opto-electronics and fiber optic manufacturing with the acquisition of Philippines-based Amertron Global Inc in 2013. The latter serves the high-growth wireless and mobile technology sectors, producing key components in leading brands of smartphones and tablets.

Inari operates nine facilities in Malaysia, China and the Philippines, employing about 5,000 workers. Notable clients include Avago Technologies, Osram, Lite-On and Sigmatron International. It has allocated RM45 million for capital expenditure in FY June 2015, including a new 166,000 sq ft plant in Bayan Lepas Industrial Zone, Penang.

For FY2014, sales more than tripled to RM793.7 million due to the sales consolidation of Amertron, higher demand for wafer processing services, and chip assembly and testing services under the RF and opto-electronic segments. Pre-tax profit, meanwhile, surged 147.0% to RM106.9 million.

The company has a solid balance sheet with net cash of RM83.7 million or 12 sen per share at end-Dec 2014 (FY2011: RM8.8 million). From FY2011 to FY2014, sales and pre-tax profit grew by compounded annual growth rate (CAGR) of 87.9% and 73.5%, respectively. Shareholders’ equity increased by a CAGR of 78.5% to RM258.2 million during the same period.

For 1H2015, sales increased 19.0% y-o-y to RM449.8 million while pre-tax profit rose 52.1% to RM73.9 million, mainly due to higher trading volumes especially the RF segment that benefitted from high demand for smartphones and mobile devices.

The stock is selling at a trailing 12-month PE ratio of 16.8 times and 6.2 times book.

Dividends totalled 6.8 sen per share in FY2014, translating into a yield of 2.2%.

Source: The Edge
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Re: Inari Amertron

Postby winston » Tue Jan 05, 2016 8:50 am

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CIMB Research retains Add for Inari Amertron

KUALA LUMPUR: CIMB Equities Research is maintaining its Add rating on Inari Amertron, with an unchanged target price of RM4.

It said on Tuesday this was based on 14.4 times CY17 price-to-earnings (P/E), similar to the sector average.

“Inari is our top pick in the tech sector due to its high exposure to the growing mobile connectivity space.

“We see higher radio frequency (RF) content growth per smartphone and sustainable margin growth at Amertron as potential re-rating catalysts for the stock,” it said.

CIMB Research said Inari’s shares went ex-bonus on Monday following the issuance of 201.8 million new bonus shares, increasing the group’s share base to one billion shares.

“We are positive on the bonus issue. Although it does not alter the company’s fundamentals, we expect this corporate exercise to boost the stock’s liquidity and improve near-term trading sentiment,” it said.

The research house said Inari’s growth strategy was intact, driven by strong demand for its RF products on the back of rising 4G network adoption and exponential mobile data growth.

Inari plans to increase its production floor area by another 50% in 2016 from 328,000 sq ft to 506,000 sq ft, with additional capacity from its P13B plant to support the robust growth of its RF segment.

“We believe Inari’s strong balance sheet, with a net cash position of RM206m, will be sufficient to support its expansion drive,” it said.


Source: The Star
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Re: Inari Amertron

Postby winston » Fri Feb 19, 2016 8:43 am

CIMB Research retains Add for Inari-Amertron

KUALA LUMPUR: CIMB Equities Research is retaining its Add rating for Inari-Amertron with an unchanged target price of RM4.

It said on Friday the RM4 target price is based on 14 times CY17 price-to-earnings (P/E), a 10% premium over the sector P/E.

“Potential rerating catalysts include higher RF content growth per smartphone and sustainable margin growth at Amertron. Inari remains our sector top pick due to its strong three-year EPS CAGR of 21%,” it said.

To recap, Inari is acquiring 5.25 acres of industrial land with a factory building in Bayan Lepas, Penang, for RM22.8mil.

The plan is to raise its production capacity, especially in the radio frequency (RF) division given the resilient industry demand for advanced RF components for smartphone applications.

“We expect the new factory to be ready for production in 2017, following renovation, modification and enhancement works. We estimate the new building will raise its total RF division floor space to over 700k sq ft,” it added.

CIMB Research said Inari expects to fund the acquisition through internal funds and bank borrowings. It could fully fund the acquisition internally given that it had a healthy net cash position of RM206mil as at end-September 2015.

Moreover, the company also has RM88mil in unutilised proceeds from its rights issuance. Management had earlier allocated about RM30mil of its capex for acquisitions.

“The stock is down 11% YTD partly due to the weak sentiment across the sector following concerns over Apple cutting its iPhone production by 30% and also the reversal in currency movement given the strengthening of the RM against the US$.

“Nevertheless, we believe Inari’s fundamentals remain intact given that RF content in smartphones is expected to grow by more than 20% p.a. over the next three years,” it said.

Source: The Star

http://www.thestar.com.my/business/busi ... -amertron/
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Re: Inari Amertron

Postby winston » Fri Aug 26, 2016 10:39 am

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Inari Amerton maintained at ‘buy’

Buy (maintained)
Target price: RM3.54

INARI Amerton Bhd’s fourth quarter financial year 2016 (FY16) earnings rebounded from its third quarter FY16 lows, which lifted FY16 core earnings to RM153mil.

Affin Hwang Capital Research said this was within expectations and that the fourth quarter FY16 core earnings rose 49% quarter-on-quarter (q-o-q), partially due to the low base.

It said inventory was eventually replenished, while revenue grew 17% q-o-q mainly due to improvement in its radio frequency (RF) business, which made up half of Inari’s revenue.

“We understand that utilisation levels at its RF segment recovered to 65% by end-June, compared to an average of 50% in third quarter FY16.

“On the whole, the beter FY16 earnings were underpinned by revenue growth (12% year-on-year) and margin expansion, which was aided by the stronger US dollar,” said Affin Hwang.

It noted that the FY16 earnings before interest, taxes, depreciation and amortisation (Ebitda) margin improved to 19.8% versus 18% a year ago due to currency gains, but also likely due to new product dveelopment from the RF segment.

Inari also announced a final dividend per share (DPS) of 2.2 sen (FY16 DPS of 8.4 sen from 8.9 sen in FY15).

Affin Hwang made slight changes to its 2017 to 2018 earnings per share (EPS) after incorporating the full-year financials and introduced its 2019 EPS forecast of 25.5 sen.

It kept its ‘buy’ call and target price of RM3.54, stating that it liked the RF growth story, which would be led by 4G adoption.

Source: Affin Hwang Capital Research
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Re: Inari Amertron

Postby winston » Wed Nov 23, 2016 2:37 pm

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A good start to FY17

Inari's 1QFY6/17 core net profit was in line with expectations, at 23% of our and 25% of Bloomberg consensus full-year estimates.

Core net profit grew 2% yoy in 1QFY17 due to higher RF components shipment volumes and favourable currency movements amidst higher depreciation expenses.

Inari declared an interim and special dividend of 3 sen, in line with expectation.

Maintain Add with a higher RM3.80 TP as we roll forward our valuation to CY18F.

Potential re-rating catalysts include higher RF content growth per smartphone and sustainable margin growth at Amertron. Inari is our top pick for the sector.

Source: CIMB

https://brokingrfs.cimb.com/gxzJUBTgOfk ... FJEJA2.pdf
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Re: Inari Amertron

Postby winston » Thu May 18, 2017 8:23 am

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Eye scanning technology to boost Inari’s growth

Analysts believe major smartphone makers will include this capability in their upcoming flagship models in the wake of higher mobile payments adoption and fingerprint verification.

By S. PUSPADEVI

PETALING JAYA: Technology firm Inari Amertron Bhd’s move into iris scanning manufacturing earlier this year is starting to make headway as the venture will help fuel revenue growth of 18% for the financial year ending June 30, 2018 (FY18).

Analysts believe major smartphone makers will include this capability in their upcoming flagship models in the wake of higher mobile payments adoption and fingerprint verification.

They believe that a combination of foreign exchange rate and the new expansion, together with the company’s continued manufacturing activities in the wireless radio frequency (RF) and optoelectronics operations, will help support earnings growth.

Also, they said the global semiconductor industry’s prospects have improved. Inari’s share price reflects the optimism in its earnings prospects, having jumped nearly 36% since late December to close at RM2.17 per share yesterday.

CIMB Research kept an “add” rating on the stock with a higher target price of RM2.50, from RM2.18 previously.

The research house said the latest third-quarter ended March 31 results were above expectations and were supported by resilient demand for flagship smartphone model launches in the second quarter of calendar year 2017 onwards.

“We expect Inari to benefit from stronger global semiconductor sales in 2017, driven by sustainable demand amid global economic recovery,” said CIMB, adding that most research groups had projected an average of 7% sales growth in 2017 versus 1.1% last year.

It was optimistic on the Inari Optical Technology (IOT) venture catering to the iris scanners expansion. “IOT contributed about one month sales in the third quarter FY17 with a production capacity of 2.5 million units.

“We expect volume to increase to about 5 million units per month in the fourth quarter, with another gradual increase of up to 10 million units per month in the second half of this year,” CIMB said.

It added that IOT is estimated to make up about RM50mil or 4% to 5% of forecast revenue in FY17.

Meanwhile, RHB Research has kept a “‘buy” call with an unchanged target price of RM2.53 based on 2018 forecast price-earnings of 18 times.

The house said Inari’s third-quarter FY17 numbers were stronger year-on-year across the board due to higher capacity at its RF segment, although revenue was rather flattish.

“The RF segment is likely to hit close to 850 testers by end-2017 or early-2018 versus 700 units currently to cater to orders come June or July 2017 – ramp up for new smartphone launches in August or September this year,” RHB Research said.

On its iris scanning module division, RHB noted that Inari spent RM25mil to build installed capacity of 5 million units per month, and is looking to allocate another RM75mil in FY18 for further capacity expansion.

Source: The Star

http://www.thestar.com.my/business/busi ... QWxr4Vh.99
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Re: Inari Amertron

Postby winston » Thu May 18, 2017 8:23 am

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Eye scanning technology to boost Inari’s growth

Analysts believe major smartphone makers will include this capability in their upcoming flagship models in the wake of higher mobile payments adoption and fingerprint verification.

By S. PUSPADEVI

PETALING JAYA: Technology firm Inari Amertron Bhd’s move into iris scanning manufacturing earlier this year is starting to make headway as the venture will help fuel revenue growth of 18% for the financial year ending June 30, 2018 (FY18).

Analysts believe major smartphone makers will include this capability in their upcoming flagship models in the wake of higher mobile payments adoption and fingerprint verification.

They believe that a combination of foreign exchange rate and the new expansion, together with the company’s continued manufacturing activities in the wireless radio frequency (RF) and optoelectronics operations, will help support earnings growth.

Also, they said the global semiconductor industry’s prospects have improved. Inari’s share price reflects the optimism in its earnings prospects, having jumped nearly 36% since late December to close at RM2.17 per share yesterday.

CIMB Research kept an “add” rating on the stock with a higher target price of RM2.50, from RM2.18 previously.

The research house said the latest third-quarter ended March 31 results were above expectations and were supported by resilient demand for flagship smartphone model launches in the second quarter of calendar year 2017 onwards.

“We expect Inari to benefit from stronger global semiconductor sales in 2017, driven by sustainable demand amid global economic recovery,” said CIMB, adding that most research groups had projected an average of 7% sales growth in 2017 versus 1.1% last year.

It was optimistic on the Inari Optical Technology (IOT) venture catering to the iris scanners expansion. “IOT contributed about one month sales in the third quarter FY17 with a production capacity of 2.5 million units.

“We expect volume to increase to about 5 million units per month in the fourth quarter, with another gradual increase of up to 10 million units per month in the second half of this year,” CIMB said.

It added that IOT is estimated to make up about RM50mil or 4% to 5% of forecast revenue in FY17.

Meanwhile, RHB Research has kept a “‘buy” call with an unchanged target price of RM2.53 based on 2018 forecast price-earnings of 18 times.

The house said Inari’s third-quarter FY17 numbers were stronger year-on-year across the board due to higher capacity at its RF segment, although revenue was rather flattish.

“The RF segment is likely to hit close to 850 testers by end-2017 or early-2018 versus 700 units currently to cater to orders come June or July 2017 – ramp up for new smartphone launches in August or September this year,” RHB Research said.

On its iris scanning module division, RHB noted that Inari spent RM25mil to build installed capacity of 5 million units per month, and is looking to allocate another RM75mil in FY18 for further capacity expansion.

Source: The Star

http://www.thestar.com.my/business/busi ... QWxr4Vh.99
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Re: Inari Amertron

Postby winston » Thu May 18, 2017 11:33 am

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Inari Amertron (INRI MK)
by Ivan Yap

Share Price: MYR2.17
Target Price: MYR2.45
Recommendation: Buy

Re-rating is well warranted

Inari’s 9MFY6/17 core earnings of MYR157m came in within our FY17 core net profit forecast at 73% but beat consensus’ expectations at 80%.

We make minor changes (>2%) to our FY18/19 earnings forecasts, having incorporated higher USD/MYR forex rate of 4.30.

We now peg Inari to 18x CY18 PER on a FD EPS of 13.5sen, deriving a higher MYR2.45 TP (+12%).

This re-rating is justifiable by Inari’s sector bellwether status and superior valuations matrix (i.e. low PEG, high yield); reiterate BUY.

Source: Kim Eng
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Re: Inari Amertron

Postby winston » Wed Aug 23, 2017 10:05 am

Another record profit in FY6/17

4QFY6/17 earnings were in line as full-year core net profit made up 98% of our FY6/17 forecast, but exceeded market expectations at 106% of consensus’ estimates.

Core net profit in FY6/17 surged 38% yoy due to higher RF component shipment volumes and new contributions from iris scanner, amid higher depreciation expenses.

It declared a 2.8 sen fourth interim DPS, bringing the total FY17 DPS to 9.8 sen, ahead of our expectations of 8 sen.

We expect stronger earnings in FY6/18F, driven by robust growth in smartphone RF content, even better earnings from iris scanner, and a turnaround at IIS.

We raise our FY18-19F EPS by 2%. Maintain Add rating with a higher RM2.75 TP, still based on 18x CY17F P/E.

Source: CIMB

https://brokingrfs.cimb.com/n1kLVp4DfX4 ... pnu-g2.pdf
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Re: Inari Amertron

Postby winston » Wed Aug 23, 2017 10:11 am

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Inari Amertron (INRI MK)

Six consecutive years of earning growth

Within expectations

Inari’s FY6/17 core net profit of MYR206m came in within our and consensus expectations at 96%/103%.

FY17 headline net profit included a gain of MYR20m from the disposal of PCL Technologies (4977 TT;

Our FY18-19 earnings forecasts are unchanged pending an analyst briefing today.

Our MYR2.70 TP is pegged on unchanged 20x CY18 PER (10% premium to our target PER peg for Malaysian listed technology companies within our coverage for its superior visibility).

Maintain BUY.

https://factsetpdf.maybank-ke.com/PDF/6 ... 7035c6.pdf?
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