Strong balance sheet to support dividend payout policy of 40%. Post acquisition, we understand that the group’s net gearing still remained low at 0.16x. Coupled with its sustainable earnings profile, we believe the group could offer up to a FY14E DPS of 7.0 sen translating into a decent dividend yield of c.4.4%, assuming 40% DPR.

Trading Buy @ TP of RM2.10. We value the stock at RM2.10/share @ 12.0x FY14 PER, which is at a +2SD level above its 2-year average forward PER as we view that its: (i) earnings stability, which makes it less vulnerable to the semiconductor cyclical volatility, (ii) robust FY12-FY14E NP CAGR of 98%, (iii) high exposure to the booming S&T segment, and (iv) rising investability as it is en-route for Main Market listing (expected by 1Q2014), should deserve a premium valuation.

TECHNICALS

Resistance: RM1.74 (R1), RM1.88 (R2)

Support: RM1.40 (S1), RM1.30 (S2)

Comments: Even with the stellar gains this year, INARI’s technical picture remains bullish. The share price broke out of a “Bullish Pennant” just last week, which heralds a continuation of an uptrend towards RM1.74 (R1) and possibly RM1.88 (R2) next.

When volume coming , all people will follow...

1300n, buy more for everage

INARI
KUALA LUMPUR: Inari Amertron Bhd will be allocating between RM35 million and RM45 million in capital expenditure (capex) in its financial year 2014 to increase its existing capacity by another 20 per cent.

Executive Vice Chairman Dr Tan Seng Chuan said the expansion is in line with the improving external demand for smartphone devices and fibre-optic products and services for the year ahead.

The company has five existing manufacturing plants in Bayan Lepas, Penang, one in Iskandar Johor, two in the Philippines and one in China.

He said the group's utilisation rate of all these plants stood at 85 per cent.

Meanwhile, Tan said the company intends for a transfer listing to the Main Market of Bursa Malaysia Securities Bhd by first quarter of next year from its ACE Market status at present.
-- Bernama

Just Keep 3 month, Now is offer price, don't miss the boat

Instacom have 205 Million contract in east Malaysia may 2013, I think the revenue will fall in 3Q, but they didn't !

I warrant, no idea, I only know Protasco is one of cold eye favourite.

Cheers! 乾杯

Yistock, hope you can same 2nd boat with me, I just load 1.40 today! THANK Magnum.

Magnum, Protasco is a good company! Is 1 of Cold eye favourite!

The  uptrend  in  Inari  may  continue  after  the  stock  closed  at  a  52-week  high.  A  trader  may  buy  if  the  stock  stays  above  MYR1.60 today, with a close below MYR1.54  as stop-loss. The price target is MYR1.80,  should  the  MYR1.70  resistance  be  broken.  However, failure  to  stay  above  MYR1.60  will  likely  see  the  stock  drift sideways, with further support seen at MYR1.50.

Think RHB also holding of warrants?

Just reloaded 0.125

Who?

Coming jor... How is Lim lee lee?

iWarrant, we hang tight already more that 1 month, until when? Think can get some Angpow from this counter. Lol

Dino, is third wave

（吉隆坡10日讯）大马创投基金（MAVCAP）总执行长贾马鲁丁指出，公司计划明年投资7000万至8000万令吉到科技公司。

　“我们尝试维持投资额，但这取决于公司素质。”

　他在出席DragonSlate媒体私人有限公司推介礼上，如是指出。

　他说，大马创投基金今年共为6家公司融资，总额达7000万令吉。

　新创立的媒体生產公司DragonSlate获得大马创投基金注资1000万令吉，將在明年逐步发放。

　贾马鲁丁预计，未来三年的投资回酬介于15%到20%之间。

　DragonSlate媒体执行董事陈立安（译音）透露，该公司计划在2014年生產2至3部电影。

　该公司亦是好莱坞老牌製片人兼金融家库特（Greg Coote），与陈立安的联营公司。两者持有公司45%股权，其余股权由大马创投基金持有。

Inari is one of them target...?!
U will smile until the end. Lol.

Wong, How you see that announcement for conversion? Thanks!

chongway, can make a simple summary...?

Wa = Capital Gain
Mother = Capital + Dividend Gain

Fortune, why u highlights tomorrow will jump to higher? Today have announment??

Iwarrants, u are trader?

Don't think can reach rm3.50

BBB Mode

Tuahuat, what is GW?

Lloydlim, tomorrow reload some more wa lah. ..

Yistock also involved this counter. ..?

Keep for short term better than instacom

Yah, tebalik haha. .

Chiam4192, Chinese call " WeeklyBusy", u can find at 7-Eleven

Sufu Wong, I saw new paper, don't know how to link.

pls refer weeklyBusy today, Inari have all page regarding tranfer to main board news. i strong believe monday proce will boom like rocket.

Any idea about 16/12/13 Us meeting?

Reload some more wa by today... hope can bring me a best Christmas present.

Yistock, your mean mother 0.260 is it?

心放大点，眼睛看远点, 50cents coming soon.

coming liow/.....

Yistock in Japan also miss this forum. . Haha

Low volume = Buy in signal

Top 5 Quarter Profits (Ace Market)
1- OSKVI - 27, 979
2- INARI - 22, 066
3- YTLE -19, 248
4- BOILERM - 9, 646
5- INSTACOM- 7, 672

Top 5 Quarter Profits (Ace Market)
1- OSKVI - 27, 979
2- INARI - 22, 066
3- YTLE -19, 248
4- BOILERM - 9, 646
5- INSTACOM- 7, 672

RuleNo1, Your analysis is great, but why directors sell their warrants is under pressure..? can do a Explanation ? Thanks...!

What is transfer to main board cetiria..? Just 30mil profit in 1 yrs can transfer?

Inari and instacom which will change main board 1st....?

Fortunebull, if have 20k to top up, Inari & Instacom which one u prefer?

RHB Research

Instacom’s 9MFY13 earnings of MYR22.3m beat expectations, thanks to higher than expected revenue recognition although receivables swelled.The company’s operating cash flow also turned negative.    We raise our FY13/FY14  net profit  forecasts  by  13%/4%  and  lift  our  FV  up  a  tick  to MYR0.30  (from  MYR0.29).  Maintain  NEUTRAL  as  the  strong  earnings should mitigate concerns on the selldown by major shareholders.

Above expectations.  We  were  surprised  by the good set of  financials reported  by  Instacom  as  two  of  its  major  shareholders-cum-key personnel had  recently  reduced their stake in the company (see  our  19 Nov  report,  Turning Cautious).  YTD, its 9M13 earnings made up 92% of our full-year forecast (comparable 2012 numbers are not available as the reverse takeover of I-Power was only completed in Oct 2012).
Digesting the numbers. We understand that  3Q13 revenue was  strong due  to  increased  CME works,  along with  the commencement of  a  fibre project in Johor and MYR205m worth of jobs from 1M Utama SB (FP1U). However, these were booked closer towards the end of the quarter, thus resulting  in  receivables  rising  27%  q-o-q.  As  a  result,  the  company experienced  an  operating  cash  flow  shortfall  of  MYR11m  (2Q13: +MYR16m).
Forecasts  &  risks.  We  raise  our  FY13/FY14  net  profit  forecasts  by 13%/4% respectively  as we  now build  in  more CME works and a  higher margin  assumption.  Note  that  we  had  earlier  omitted  any  contribution from  FP1U  as  our  earlier  checks  with  management  back  in  October indicate that this has yet to  materialize. Hence,  the higher 3Q13 revenue justification  provided  was  a  pleasant  surprise.  The  key  risks  are:  i) execution risks in setting up  Instacom’s  infrastructure assets, and iii) a slower-than-expected take-up for its services.
Valuation  &  recommendation.  Following  the  upward  revisions  to  our forecasts,  we  lift  Instacom’s  FV  slightly  to  MYR0.30  (vs  MYR0.29), pegged to an unchanged 10x FY14 P/E. We would turn more positive on the  stock  should  contributions  from  FP1U  improve  further  and accompanied  by  better  collection.  Maintain  NEUTRAL  as  the  strong earnings  should  lift  sentiment  on  the  stock  notwithstanding  the  earlier selldown  by  major  shareholders.  We  advise  investors  to  tread  with caution when investing in the stock.

Yistock, 525 most better and u never regret

Have road block...Be careful