Inari Amertron expects its new fibre based optical cables to contribute RM20m to its revenue for FY16. The company recently introduced its own brand fibre optic offerings – Active Optical Cables (AOC) and Direct Attach Copper cables. It targets to corner 5% of global market share in optical cables by 2017. In 2014, the AOC market size was estimated at US$1.4bn and is projected to grow to US$3.5bn in 2017 according to LightCounting, a fibre optic market research company. (Source: Malaysian Reserve)

Comments: We are positive on this development and confident that this product would be a success as the technology is sourced from a leading fibre optic cable manufacturer. Ultimately, we think that Inari is moving into the right direction, positioning itself for the Internet of Things, a space which we foresee will see explosive growth for fibre products, in the years to come. Maintain BUY and TP of RM3.89

Source: Affin Hwang Capital Research - 24 Aug 2015