By UOB 19/3:-
Still strong visibility from RF segment. While 1QCY typically is a softer quarter,
management noted that the loading came in unexpectedly strong. Meanwhile, the visibility
from its RF business remains decent with three months of fixed orders plus another three
months of floating orders. This signifies strong demand from its integrated device
manufacturer (IDM) customer on the back of overwhelming smartphone demand alongside
mitigation against any lockdown disruption. Beyond this, Inari is already working with its IDM
customer for the next flagship smartphone which will see additional 10-15% content boost.
Additionally, its IRIS scanner adoption business is picking up steam. Note that the revenue
contribution from this segment was at RM150m in FY18.

Optoelectronics - seeing light at the end of tunnel. The demand for its automobile and
industrial products has improved since 1QFY21 vs 2HFY20, after a washout FY20 which
was dragged by the weak automobile sales and lockdown restrictions which affected its
China and Philippines operations. Utilisation-wise, it is running at 65% vs 50% previously,
although the momentum is still partially hindered by the shortages of key components. Note
that such shortfall is expected to improve from Apr 21 onwards.

New business expansion underway at P55 and P34 plants. Inari (which still has a
remaining vacant space of 480,000 sf out of its new 680,000sft build-up in its P34 plant, and
50,000 sf at its new P55 plant) is benefitting from the ongoing trade tension. The group is
being approached by MNC customers with trade diversion-related orders. The group is
currently exploring business opportunities with three US and Chinese customers for
assembly services related to: a) optical transceiver modules, b chips and modules, and c)
power modules. We believe the net margins should be lucrative (at least 15%) judging from
the group’s track record of customer acquisitions. Management believes that this vacant
floor space could yield a RM700m revenue in a blue-sky scenario. On its floor space
allocation, the plan is to still have Block A reserved for its German customer and its acquirer
(with Inari now the approved vendor for the new entity following the M&A activities), Block B
for its US customer (for RF testers and PCL), while Block C is for customer C (with expertise
in RF tech) and new prospects.

Bonus only can drive the price

https://www.klsescreener.com/v2/news/view/805399

As at 28 February 2021, KESH’s accumulated Y2021 new order was recorded at RMB34 million included other hook up contracts worth RMB32.8 million secured from the largest semiconductor foundry company in China. With this new award of Contract, the latest orderbook of KESH is now at RMB94 million, worth approximately RM59.4 million.

4

MBB:-

Looking forward to an even better year in FY21

FY20: Posted one of its highest profits in history
4Q20 core PATMI would have been MYR58m if not for accounting FV loss on derivative FI (MYR39m). Despite this, SOP posted one of its highest core PATMI in history in FY20 (MYR197m; +139% YoY). Positively, the FV
loss will likely reverse in FY21E. Coupled with higher CPO ASP, we expect SOP to deliver 16% EPS growth for FY21E. Trading at just 10x PER, we maintain our BUY on SOP with a higher TP of MYR5.59 on 14x 2021 PER
peg, its updated historical 5Y mean (from MYR5.36 on 15x 2021 PER).

4Q20: Core results hurt by FV loss on derivative FI
4Q20 core PATMI of MYR19m (-59% YoY, -72% QoQ) brings 12M20 core
PATMI to MYR197m (+139% YoY), which met just 84%/81% our/street full-
year forecasts – below estimates. Key surprise in 4Q20 was the MYR39m
in accounting FV loss on derivative FI and a share of JV losses (MYR12m).
Otherwise, its full-year results would have been within expectations.

FY20: Benefitted from higher palm oil prices
FY20 strong earnings growth was mainly driven by high palm oil products prices (MYR2,779/t; +29% YoY) and PK prices (MYR1,862/t; +28% YoY) as FFB output was just a tad higher (+1% YoY). While it is unclear how SOP’s
downstream performed, we believe it would have had a small positive contribution if not for the overall FV loss on derivative FI of MYR12m in FY20. As for cost, we estimate SOP’s FY20 all-in operating cost of production to be slightly higher at MYR1,549/t (+4% YoY).

FY21-22E EPSs raised by 12%/6%
For FY21E, SOP guides for +7-10% YoY FFB output growth (MKE: +7% YoY). And incorporating our higher industry-wide CPO ASP forecasts of
MYR2,700/t (from 2,500/t) for 2021, and MYR2,600/t (from 2,500/t) for 2022, we raise our FY21-22E core EPS by 12%/6%. We believe the present high CPO ASP will more than offset the challenging downstream
environment. We introduce our FY23E forecast. As for dividend, SOP will declare a final DPS closer to its AGM date.

PCL is the world’s largest maker of 16-gigabit small form-factor pluggable (SFP) optical transceiver modules, as well as one of the two 32G product suppliers globally. The Taipei-based company counts Foxconn Optical Interconnect Technology (鴻騰光電), Huawei Technologies Co (華為) and NEC Corp among its major clients.

Be patient...

aminvest tp should be more than 60c. error in report i suppose

Affinhwang

Earnings upgrade cycle is underway
 Excluding forex losses, Inari’s 2QFY21 core profit breached the
RM100m/quarter mark for the first time
 EBITDA margin surprised on the upside, hitting 34.7% in 2QFY21. 1HFY21
EBITDA margin of 33% was well ahead of our previous forecast of 27%
 Remains a high conviction 5G pick as adoption of the technology should
catalyse earnings. Maintain BUY with TP raised to RM5.92

Kgb latest substantial shareholder aberdeen

3.53

Bumi Armada Berhad (“Bumi Armada” or the “Company”) refers to its previous announcement on 24 April 2019 with respect to the above matter.



Bumi Armada wishes to announce that the Facility Agreement has been amended on 23 February 2021 to extend the final maturity date for Tranche 1 (USD260 million or approximately RM1,051 million*) of the USD660 million (approximately RM2,668 million*) Term Loan Facilities to 23 November 2022.



The final maturity date of 23 May 2024 for Tranche 2 (USD400 million or approximately RM1,617 million*) remains unchanged.



The above revision takes into consideration the impact of the COVID-19 pandemic and the resulting significant slowdown in global business activities, which have in turn impacted the progress of Bumi Armada’s monetisation initiatives.



Notwithstanding the above and barring unforeseen circumstances, Bumi Armada expects continued stable operations for its FPO business. The OMS segment is expected to remain soft with relatively subdued industry activity. Bumi Armada has COVID-19 mitigation measures in place and will continuously monitor the situation to ensure the ongoing safety of its employees and assets.



This announcement is dated 23 February 2021.

Leong. Dry ice contribute less than 2% to the group

7.8+

Can armada bid for petronas osv biz?

5.17 very conservative TP if urs know how to project the earnings for inari.

Inari now mainly driven by rf. Go read osram presentation and latest uob report indicated that osram parent company, ams ald approved inari as their vendor as well. Optical transreceiver module another catalyst. Check pcl qoq earnings growth rate in taiwan. And other partnership. 700m of profit is achieveable in 3 yeara time

Therefore, he raised his target prices (TPs) for Inari Amertron Bhd (TP: RM5.17), Malaysian Pacific Industries Bhd (TP: RM41.50), Unisem (M) Bhd (TP: RM8.50) and KESM Industries Bhd (TP: RM20.60). Affin

all automotive companies will have multiple vendors. if one cant supply due to capacity constrain then order will move to their competitors.

After two consecutive years of earnings decline, Inari is poised for a strong
comeback in FY21, as we expect it to benefit from the deployment of 5G
wireless technology with more RF contents to be included in 5G devices. Inari
has recently increased its number of SiP lines to 22, from the initial 8 lines, in
order to cater for the strong volume loading. Its new JV with PCL
Technologies also serves as another prong of growth to the Group,
underpinned by the adoption of 400G Ethernet ports. With that being said, we
forecast a CAGR of 32.1% on Inari’s FY20-23F earnings. We initiate Inari with
an Outperform call, with a TP of RM3.80. We derive our TP based on a PE
multiple of 42x, which is c.15% premium to its local peers’ average. We deem
the premium multiple justifiable, given its multiple prong growth strategy that
will support the Group’s near to medium term outlook.
 Closest proxy to 5G. We believe Inari will greatly benefit from the
transition to the emerging 5G technology, given that the wireless
technology evolution will result in higher number of frequency bands
supported by 5G devices, which in turn, increases the need for more RF
filters to be fitted. Inari provides assembly and testing services to its long-
time customer, Broadcom for the latter’s premium FBAR filters. We
highlight that Inari has installed a total of 22 SiP lines currently, from 8
lines initially. Its RF segment is expected to flourish, considering the
overwhelming demand for the US-based smartphone maker’s latest 5G
model. We opine that the wireless component supply agreement signed
between Broadcom and the US phone smartphone maker also helps to
provide clarity to Inari in the short to medium term.
 New JV to start bearing fruit. Inari’s 30%-owned JV with the Taiwan-
based PCL Technologies will be focused on producing optical
transceivers with transfer speeds up to 400Gbps, which is 4x the speed
of current optical transceivers used in data centers. The growth of the
optical transceiver market will be underpinned by the adoption of 400G
Ethernet ports as well as data center growth. The new venture has made
its first shipment in June 2020 and we also expect to see positive
contribution from this JV to the Group in FY21.
 Valuation. We initiate coverage on Inari with an Outperform call,
ascribing a PE multiple of 42x on its CY21F EPS of 9.1sen per share.
The 42x multiple implies c.15% premium to local peers’ average. We
deem the premium justifiable, considering (i) its strong 3-year earnings
CAGR of 32.1%, (ii) closest proxy for 5G growth, and (iii) its exposure to
the growing optical transceiver space.

We project 60% yoy RF sales growth in FY6/21F, driven by SiP assembly
and tester capacity expansion on new 5G smartphone launch cycles.
■ We raise FY21-23F EPS by 6-10%, and expect a 3-year EPS CAGR of 30%.
■ Reiterate Add with a higher RM3.70 TP, based on a higher 35x P/E.

Cimb

FF la

inari TP likely will be revised upward by analysts in feb stay tune

Ops. Kenanga tp so close to my tp of 3.5

Upgrade TP to RM3.10 (55% upside). After a very positive meeting with the management, we believe that FY21 could see yet another year of record high orders, building upon the RM490m all-time high order secured in FY20. SMIC has continued to award more jobs with the latest one secured in Dec 2020. Existing SMIC jobs at hand will keep the group busy till June, excluding on-going 2021 tenders. Being the incumbent, we believe KGB has the advantage in winning the 2021 bids which will consist of UHP hook-up in all four SMIC fabs. Its LCO2 plant’s utilisation recently picked up from 50% to 100% due to strong demand from Singapore, leading to higher ASP. Halal certification for its LCO2 is expected to be secured in a month’s time, facilitating its plan to penetrate the food and beverage segment. Hence, we believe there is room for more ASP hikes.

From affin

Inari reported its strongest-ever headline profit in 1Q FY21 underpinned by strong
demand for RF filters as its northern US-based smartphone client introduced 5G into
its entire model line-up this year. With clear order visibility over the next 2 quarters,
Inari is set to benefit from the 2.75x increase in its assembly capacity. *******Growth
catalyst is likely to come from its Korean smartphone brand and contribution from the
business in Philippines and its JV in the equipment business, which we have yet to
incorporate into our model.********We forecast a FY20-23E earnings CAGR of 49% and
recently raised our 12-month TP to RM3.33, based on 35x CY21E PER. Downside
risk: loss of market share by its key smartphone client.

https://www.gizmochina.com/2021/01/19/broadcom-supply-samsung-wifi-6e-galaxy-s21-ultra/

Banks and technology players were the key areas of foreign interests
The top three stocks that attracted foreign net buys were Top Glove, Public Bank and
Inari.

4 skid tanks are ready for export....co2

275m

In our recently meeting with Kelington Group, we noted that SMIC is still rushing the group to speed up on the delivery and hinted of more UHP-related jobs to be awarded in 2021.

Kelington’s orderbook hits RM490m with new RM118m contracts | https://www.klsescreener.com/v2/news/view/779747

Dont forget my 3.5 lol

2

Rm3.5

KUALA LUMPUR (Jan 9): Exports of Malaysian palm oil products for December rose 20.35% to 1,709,084 tonnes from 1,420,103 tonnes shipped during November, independent inspection company AmSpec Agri Malaysia said last week.

If cpo stay at 3000 for 2021. Sop earnings likely to hit 350 to 400m

Well done

Malaysian exports in December could climb to 1.6 million tons, the stronger shipments, as well as a likely reduction in production and stockpiles, are mostly priced in, Bagani said. The market is now looking at external factors, such as strikes by workers at soybean export plants in Argentina and market optimism related to the Covid-19 vaccine, he said.

Indonesia’s move to raise its export tax on crude palm oil for January may underpin the market, Bagani said.


Malaysia’s palm oil exports jumped 17% from a month earlier to 1.34 million tons during December 1-25 , according to cargo surveyor AmSpec Agri.

Nothing news

Industrial gas is the future

Hydrogen is the future. In March 2020.

Gan said the company is also looking to continue exploring opportunities in other gases such as nitrogen, hydrogen, oxygen and others. “We want to build our presence here in this market,” he added.

Apple aims to make 30% more iPhones in first half of 2021 - Nikkei

https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKBN28P0EA

Good time will come just be patient

plantation stocks usually good run in beginning of the year.
q4 bull run just more on speculating...if FCPO bull effect sustainable and the effect spill over next year...the bull will start
2019 price drop after hit 4.2 bcos the above didnt happen.
this round...cpo bull due to structural changed (back by fundamental).
u guys can check the stock price of sop or any other plantation companies since 2010 and read together with fcpo.

80c