RHB Research expects Inari Amertron’s portfolio diversification to bear fruit
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00:00 We're taking a look at Inari Amatron this Friday morning.
00:05 RHB Research upgrading the stock to buy from neutral with a higher RM3.62 target price
00:11 from RM2.31 previously.
00:14 The counter ended trading yesterday at RM3.09.
00:17 So nine-month FY23 core earnings at RM255m missing estimates due to a more pronounced
00:24 slowdown in volume loading and margin.
00:27 The outlook for the smartphone market is challenging.
00:30 IDC recently lowered its 2023 worldwide shipments forecast to a 3.2% decline from 1.1% decline.
00:39 But things should be looking up for Inari in the coming fiscal years.
00:42 RHB raising its FY24-25 forecasts by 5.7% to 14% after factoring in the contribution
00:50 from its new product portfolio and its China JVs.
00:54 Let's look at the new products first.
00:56 These include new power modules on the system on module platform, sensors, memory and power LEDs.
01:02 Then in China, Inari's 54.5% owned Yiwu Semiconductor International Core Plant on
01:09 an 11.5-acre land is on track for completion by the first half of FY24.
01:15 Meanwhile, its 51% owned Inari MIT has started operations at Plant P21 with various new product
01:23 launches in custom machining.
01:26 Now what does the street say?
01:27 According to Bloomberg data, analysts are split, with 12 recommending buy and 8 saying hold.
01:34 Average target price RM2.90, which is some 6% lower than Inari's last close of RM3.09.
01:40 Thanks for watching.