Inari Amertron

[winston]

not vested

Nov 25, 2020

Hello, strong earnings recovery!

1QFY21 results beat expectations, making up 32%/30% of our/Bloomberg consensus FY21 forecasts due to higher-than-expected RF output utilisation.

We expect its earnings growth momentum to continue on the back of new SiP line capacity expansion and robust demand for new 5G smartphones.

Upgrade to Add, with RM3.00 TP, based on a higher 31x CY22F P/E.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... D8ED59D544

[winston]

not vested

Nov 26, 2020

Inari Amertron (INRI MK)
Direct Proxy For 5G Upgrade Cycle; At Its Inflection Point Of Earnings Upswing

Being the direct beneficiary of the 5G upgrade cycle, we believe Inari is again in a sweet spot to reap the enormous potential with its state-of-art manufacturing technology.

This is based on its involvement from front-end to back-end tech supply chain.

After a challenging FY20, Inari is back to delivering strong earnings again in FY21.

This comes amid the launch of new US flagship smartphones, which will see a 2-year net profit CAGR of 39%.

Maintain BUY. Target price: RM3.20.

Source: UOBKH

https://research.uobkayhian.com/content ... b44314b68e

[winston]

not vested

Nov 25, 2020

Analysts upgrade Inari Amertron to 'buy' on strong earnings recovery

by Tan Siew Mung

KUALA LUMPUR (Nov 25): Analysts have upgraded Inari Amertron Bhd to "buy" as they expect the firm's earnings growth momentum to continue on strong fifth-generation (5G) smartphone demand.

Source: The Edge

https://www.theedgemarkets.com/node/542899

[winston]

not vested

Sector’s Top Pick

Reiterate BUY and positive earnings outlook for Inari, supported by its key RF division.

We note that all its new SiP (system-in-package) assembly lines in the P34 plant have commenced operations as planned - to cater to the favourable near-term demand from Broadcom.

Our estimates and MYR3.40 TP are unchanged, based on a target 36x FY21E PER (at +2SD of PER mean).

Inari remains our top sector pick.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/2 ... d25833.pdf

[winston]

not vested

BUY (Upgrade from Hold)
Price Target 12-mth: RM3.55 (19% upside) (Prev RM2.35)

What’s New
We upgrade Inari to BUY with a higher RM3.55 TP
RF segment utilisation remains strong with 5G ramp-up; packaging capacity still tight
Raise FY21-23 EPS by 5-9%
Valuation re-rating to continue amid secured earnings visibility and positive equity fund flows

Key Risks to Our View:
Slower smartphone sales, weaker USD. Key risks include:
1) Weaker-than-expected 5G smartphone sales, especially of the US end-customer;
2) Sharp depreciation in USD against MYR; and
3) Global economic slowdown.

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fjihckiia

[winston]

not vested

Inari Amertron (INRI MK)
Supercharging Prospects With Multi-Pronged Growth Strategies

Despite share price surging >40% since our conviction BUY call, we still see ample
upside on strong earnings prospects amid the tech cycle boom.

Besides exponential growth from the RF segment, Inari’s P34 plant is also seeing positive progression which could supercharge its earnings further from FY22.

It is on the verge to deliver a 2-year net profit CAGR of 45%, with strong growth in FY21 and expected record profit in FY22.

Maintain BUY with a higher target price of RM4.10.

Source: UOBKH

https://research.uobkayhian.com/content ... d36eaba5e1

[winston]

not vested

Another record quarter
Remains as top BUY pick

1HFY21 core net profit was within our estimates, at 57%/64% of our/consensus’ FY21E estimates.

We maintain our FY21-23E earnings and MYR4.10 TP, pegged to 40x CY22E PER (at +2.5SD).

Maintain BUY and Inari remains as our sector’s top pick, in view of strong earnings growth catalysts from its RF (radio frequency) segment, attributed to mass
deployment of 5G networks and increasing sales of premium 5G smartphone

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/2 ... 180ead.pdf

[winston]

Inari Amertron (INRI MK)
1HFY21: Once Again Beats Expectations; Record Year In The Making

INARI’s results have once again beat expectations with a second consecutive quarter
record-beating profits on the back of higher RF demand amid the refresh cycle on 5G
technology.

Besides the exponential growth from the RF segment, Inari’s P34 plant isalso seeing positive progression which could supercharge its earnings further starting
from FY22.

Increase earnings by 9%/3% for FY21/FY22 to account Y with a higher target price of RM4.20.

Source: UOBKH

https://research.uobkayhian.com/content ... 2e25f3fa37

[winston]

not vested

Inari Amertron (INRI MK)

Record Year In The Making; Explosive Earnings Underway

Despite the typical earnings normalisation in 1Q21, volume loadings from Inari’s RF
business are bucking the trend while optoelectronics picked up steam.

Besides the exponential RF growth, new business expansions at P34 and P55 which bring along diversification are underway.

Inari is staging to record a 3-year net profit CAGR of 38% in FY23.

Maintain BUY with an unchanged target price of RM4.20.

Source: UOBKH

https://research.uobkayhian.com/content ... 029bdb3555

[winston]

Inari Amertron – BUY

After a challenging FY20, Inari is back to delivering strong earnings again in FY21 amid the launch of new US flagship smartphones.

As the direct beneficiary of the 5G upgrade cycle, Inari is benefitting from the low-hanging fruit of the long overdue refresh cycle, which will see a two-year net profit CAGR of 45% from FY20 to FY22.

Share Price Catalyst

Inari’s 22 System-In-Package assembly lines are running at >85% utilisation rate on a
staggered basis (vs eight lines in FY20), driven by robust demand for its RF components
with strong visibility for the next six months.

Another positive surprise that has arisen during this challenging period is the revival of iris scanner adoption, which could lead to volume ramp-up for its existing infra-red platform.

Demand for its automobile and industrial products has improved since 1QFY21 vs 2HFY20.

Currently the group is running at a utilisation rate of 65% vs 50% previously.

Inari, which has remaining vacant space of 480,000sf out of its new 680,000sf built-up area in P34, is talking to key prospective customers which could bring in a new earnings stream in FY22.

Source: UOBKH