Recent Business News
Recent Financial Performance
Its latest result was for QE30/9/2018, which was released in November 26, 2018. For that quarter, Inari's net profit rose 5.3% q-o-q but dropped 12.0% y-o-y to RM60.2 million while revenue was mixed- up 8.2% q-o-q but down 12.7% y-o-y to RM326 million. Its revenue dropped y-o-y due to lower volume loading. PBT dropped 11.9% y-o-y mainly due to the foreign exchange fluctuation during the current quarter.
Table: Inari's last 8 quarterly results
Graph: Inari's last 32 quarterly results
Financial Position
As at 30/9/2018, Inari's financial position is deemed very healthy with good current ratio at 3.4x while gearing ratio improved to 0.3x.
Valuation
Inari (closed at RM1.23 last Friday) is now trading at a PER of 16 times (based on last 4 quarters' EPS of 7.7 sen). At this PER, Inari is deemed fairly attractive.
Technical Outlook
Inari has broken below its long-term uptrend line, SS at RM1.50 last week. Its immediate support will be at horizontal line at RM1.10 and then the psychological level of RM1.00.
Chart: Inari's weekly chart as at Jan 4, 2019 (Source: Malaysiastock.biz)
Conclusion
Based on good, albeit weaker financial performance, good financial position and fairly attractive valuation, Inari is a good stock to consider for long-term investment. However its current bearish technical outlook may lead to further price weakness until its near-term financial performance shows clarity after the reported lower sales by Apple.
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
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Created by Jordan Khoo | Jul 11, 2019
Created by Jordan Khoo | Mar 28, 2019
Created by Jordan Khoo | Mar 04, 2019
Created by Jordan Khoo | Feb 14, 2019