Posted by traderman > 2013-12-17 06:09 | Report Abuse

Inari egm, announce the capex, investor immediately sell it down

Posted by Joel > 2013-12-17 09:48 | Report Abuse

Inari Amertron - Enhancing its Earnings Base ( Tue, 17 Dec 09:27 )

Solid earnings track records with 5-year PATAMI CAGR of 40%. Inari Amertron, one of the electronics manufacturing services (EMS) players with high exposure in the Smartphone & Tablets (S&T) segment within the semiconductor industry, has remained profitable for the last 5 financial years achieving a 5-year CAGR of 40%.

Acquisition to spearhead its earnings growth. Thanks to the consolidation of earnings from the newly acquired Amertron (with revenue growth of 250% YoY in 1Q14), net profit (NP) of the enlarged group in 1Q14 soared by 179% YoY despite the lower blended NP margin of 11.0% (diluted from 13.8% in 1Q13, due to Ametron’s different product portfolio). If we were to strip out the Ametron top line figures, Inari’s revenue still grew organically by 30% YoY underpinned by its continual capacity expansion.

Promising outlook. Inari’s bread and butter business, assembly of radio frequency (RF) chips for Avago Technologies (comprises c.75% of total revenue) has made it a direct proxy to the fast growing S&T segment. With the Long Term Evolution (LTE) being the next phase of evolution from the current HSPA+ technology, Inari’s expertise in RF products has positioned itself for the next growth phase.

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.

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.

INARI's business activities are mainly categorised into:
Integrated Semiconductor Packaging and Testing Services: Ranging from back-end wafer processing services to final packaging and testing.
Optoelectronics Manufacutring, Testing and Assembly: Manufacturing, testing and assembly of optoelectronics components.
Original Design Manufacturing (ODM) of Electronic Test and Measurement Equipment: Design, development and manufacturing of electronic test and measurement products.
Fibre-Optics Research, Design and Manufacturing: Design and production of fibre optic connectors with Class 10 Cleanrooms.

Posted by gweilo > 2013-12-17 10:57 | Report Abuse

believe me insas not goin down. oni go down if Fed tapers and everything oso go down.

Posted by Abudance > 2013-12-17 14:04 | Report Abuse

Why yr confidence in insas? It's range bound. Can't seem to go up to 96 also :(

Posted by lloydlim > 2013-12-17 14:21 | Report Abuse

Dun u guys c de blockage at 0.97 & 0.98 is purposely set up by the Shark!

Posted by Abudance > 2013-12-17 14:30 | Report Abuse

Why block for?

Posted by lloydlim > 2013-12-17 14:33 | Report Abuse

To accumulate stock at lower cost, tqvm.

Posted by Abudance > 2013-12-17 14:40 | Report Abuse

Well .. Someone is selling it at their price. So how to road block?? Imari down also today. :(

Posted by chang21 > 2013-12-17 16:47 | Report Abuse

Sell from right hand to left hand and then the next day sell from left hand to right hand ...... that's how the market is manipulated ....... if you got plenty of cash and stocks in hand ....... the sky's the limit ......it's too complicated for me also ......hahaha.

Posted by ktjaven > 2013-12-17 20:59 | Report Abuse

Yawnnnnn... is it bfast time yettt??

Posted by Ken Loo > 2013-12-17 21:46 | Report Abuse

make sure is spare cash, dont stuck ur capital there for few years

Posted by lloydlim > 2013-12-18 00:04 | Report Abuse

Big or Small, AGM on 19th shall know!

Posted by Abudance > 2013-12-18 13:53 | Report Abuse

Tomorrow AGM and price is down still .... Not very encouraging for timing of meeting with fed results!

Posted by ktjaven > 2013-12-18 13:57 | Report Abuse

How gloomy....

Posted by mickaelp > 2013-12-18 15:17 | Report Abuse

anyone going to agm tomorrow? mind to update here?

Posted by ktjaven > 2013-12-18 17:51 | Report Abuse

So negative todayyy

Posted by lloydlim > 2013-12-18 17:53 | Report Abuse

Healthy correction mah! Be patience guys!

Posted by gweilo > 2013-12-18 18:03 | Report Abuse

ebeebody ascared of Fed tapering tonight but they won't so tomorrow Up again !

Posted by gweilo > 2013-12-18 19:09 | Report Abuse

Tomolo no tapering + agm !!! Shud be good cum Friday manz.

Posted by Mike Owen > 2013-12-18 21:19 | Report Abuse

False hope. All positive developments already factored in.

Posted by lloydlim > 2013-12-18 22:54 | Report Abuse

Let's c tomorrow!

Posted by Al_investor > 2013-12-19 06:47 | Report Abuse

The Fed policymakers voted to reduce monthly asset purchases to $75 billion from $85 billion, citing improvement in the outlook for the economy....
As a results....
Dow Jones Industrial Average DJIA +1.84% soared to close near its all-time high with the best point gain since October 10. Dow added 293 points, or 1.8%, to 16,167.97. The S&P 500 index SPX +1.67% rose 30 points, or 1.7% to 1,810.65, within a hair’s breadth of its all-time high. Nasdaq Composite COMP +1.15% was up 46 points or 1.1% to 4,070.66....
Stock bullish coming...

Posted by Joel > 2013-12-19 08:24 | Report Abuse

I think can buy in at current price now.
Some counters shares stay at price in between let say
1.00 - 1.05, we dun know when will rebound after ( 1.00-1.05 )
stay at some 30days in the technical chart.
( juz an opinion )
Insas made money.
Inari also made money.
HoHup jv Malton' project in Kinrara.

All is positive news.
Juz a matter of time ,when and waiting
Insas' share price to exceed rm1.00.

Posted by Joel > 2013-12-19 08:25 | Report Abuse

Somwtime really be patient.

Posted by sanchez > 2013-12-19 08:52 | Report Abuse

good day for insas, buying queue looks good.

Posted by Abudance > 2013-12-19 10:30 | Report Abuse

Look like saw teeth ... Up and down!

Posted by lloydlim > 2013-12-19 10:50 | Report Abuse

What time start AGM?

Posted by valueguru > 2013-12-19 10:55 | Report Abuse

I do agree that Insas intrinsic value is quite close to RM2 now (I could underestimate here) - on the latest 30 Sep 13 results announcement, the carrying value of associate companies is "only" RM106.8mil but just it holding on Inari shares and warrants alone, the value is now close to RM295.17 mil; giving it a unrealised surplus valuation of 28.4 sen and net assets close to RM1.93. My calculation here takes into account its latest filings (net of warrants sold) and yes, I dare to say it is very accurate. The surplus did not include other holdings and using the latest tso net of treasury shares.

Posted by valueguru > 2013-12-19 11:10 | Report Abuse

The question to ask here is that how good is this Inari value? Do we have a strong case here? So far the value has been holding up, good business support from Avago Tech (big cap USD11+ billion), expanding capacity and also Inari's directors are still buying despite the recent high.

Posted by Justin Ngo > 2013-12-19 11:15 | Report Abuse

11.30 AGM

Posted by mickaelp > 2013-12-19 11:19 | Report Abuse

anyone going to agm?

Posted by anbz > 2013-12-19 12:41 | Report Abuse

what if inari having a big fall? will this has any significant impact to insas's price? i think this is

quite high risks invesment

Posted by lloydlim > 2013-12-19 15:43 | Report Abuse

Any latest news from AGM?

Posted by gweilo > 2013-12-19 21:44 | Report Abuse

Please show me another stock with intrinsic value more than double the share price at the moment and with the positive earnings fundamentals and momentum of Insas and I will buy it !

I DARE you ! Show me !!! SHOW ME !!!

Posted by 5004100138 > 2013-12-19 21:48 | Report Abuse

Bjcorp. Haha...

Posted by gweilo > 2013-12-19 22:03 | Report Abuse

Not even close !

Posted by Abudance > 2013-12-19 23:33 | Report Abuse

What's d news on AGM, anyone knows? Stock dropped ... :(

Posted by lloydlim > 2013-12-19 23:55 | Report Abuse

Yup, any special announcement on AGM?

Posted by bowman > 2013-12-20 06:58 | Report Abuse

Anyone watching the candlesticks of this share? I believe there will be a small rally before Christmas - correct me if im wrong

Posted by steviebull > 2013-12-20 09:50 | Report Abuse

come on rally... rally like the late colin mcrae

Posted by Abudance > 2013-12-20 11:27 | Report Abuse

No giod news I guess. It dipped down after AGM.

Posted by steviebull > 2013-12-20 11:40 | Report Abuse

at least there are no bad news

Posted by Joel > 2013-12-20 12:04 | Report Abuse

Agree. most importantly is no bad news coming fr AGM.
INARI Big Shareholder r Insas.
Inari made money & bright futune bring banefit to Insas as well.
Insas's bos really a low profile person.
:-)

Posted by ktjaven > 2013-12-20 13:07 | Report Abuse

having this agm is as good as having none... there's no outcome... I guess no decision is a decision in itself...

Posted by Abudance > 2013-12-20 14:10 | Report Abuse

Low price or high profile but keep all profits to himself and give little or no dividend is there a point to support him?? Wait so long to hit rm1.00. His stock borking earn money. At least he give special dividend all shareholders will hold longer!

Posted by slts > 2013-12-20 15:26 | Report Abuse

koyak

Posted by steviebull > 2013-12-20 15:27 | Report Abuse

whole market sentiment is bad today... any idea why ?

Posted by slts > 2013-12-20 15:34 | Report Abuse

goreng counter all die

Posted by ktjaven > 2013-12-20 18:50 | Report Abuse

I dont see a cause for panic for insas... other counters deep dive at least 10sen... insas' resilience is solid... dont over-react... dont forget the quality of a sound investor...

Posted by Justin Ngo > 2013-12-20 21:32 | Report Abuse

Look back 22 nov. Also drop til 89sen and closed at 92 sen. Will the history repeat? Climb up to 98 sen or even higher.