Posted by newbirds > 2014-06-07 22:28 | Report Abuse

One good sign is volume has pick up last Friday, same pattern follow by huge surge in price.

Posted by jimstock > 2014-06-07 22:37 | Report Abuse

Inari just need to match gtronic pe at 20. Rm 4 will be there.

Posted by wangge > 2014-06-07 22:43 | Report Abuse

This stock is in super fast track growing, $£¥¥€££ are required for growing !

If you think bonus on the way, wangge may not agree!

If you think second issue of right and warrant that's possible
for supporting super fast growth!

Posted by newbirds > 2014-06-07 22:49 | Report Abuse

Bonus issue or right issue I support inari kaw kaw.

Posted by Probability > 2014-06-07 22:50 | Report Abuse

PE 20 for growing stock..easy by this year!
Oh...if only Inari was listed on Nasdaq! Pity the US investors...need to introduce them to Inari...:)

Posted by angku > 2014-06-07 22:51 | Report Abuse

i sure vote for inari but i am newbie in stock market. my vote cannot count lah

Posted by Probability > 2014-06-07 22:54 | Report Abuse

Angku...If you are malaysian citizen...sure your vote on Inari counts!

Posted by wangge > 2014-06-07 22:58 | Report Abuse

Count ! count !
Angku's support very good Liao !
After Newbie who to be ? Master lah!
Pls learn to be group 4, don't in/out for fun!

Posted by voonyoke > 2014-06-07 23:05 | Report Abuse

Existing operations. Today, Inari Amertron has four main business concentrations namely:
i) integrated packaging and testing services
ii) optoelectronics manufacturing, testing and assembly
iii) ETM equipment ODM
iv) fibre optics design and manufacturing

Packaging services. Under its integrated packaging and testing services (IPTS) division, which makes up 40-50% of its FY13 revenue, Inari Amertron provides services such as backend wafer processing, package assembly and final testing of semiconductor components. Avago is the group’s single-largest customer under this segment, contributing over >90% of its segmental sales. Avago’s RFICs are amongthe most reliable in the world, and Inari Amertron is poised to benefit from this by virtue of being one of the three main RFIC assembling and testing contractors. Through Avago, Inari Amertron would then be able to tap into the smartphone and tablet market, which is forecasted to grow at a CAGR of 12-17% over the next four years. Note that the former’s RFICs are currently found in flagship smartphones and tablets such as Apple (AAPL US, NR)’s iPhone 5s and iPad Air, Samsung (005930 KS, NR)’s Galaxy S5 and HTC (2498 TT, NR)’s One (M8) and Xiaomi Inc’s Mi-2s. With the upcoming iPhone 6 rumoured to be launched by September, we expect Inari Amertron to receive pent-up demand on orders for its RFICs over the near term. This, in our view, could help to further bump up its existing 85% utilisation rate with an installed capacity of 1.4bn units currently. Going forward, we see this segment growing at 13-25% annually, driven by demand from the smartphone and tablet markets for RFICs.

Optoelectronics arm. Under its optoelectronics arm, Inari Amertron – via its 100%-owned Amertron Global subsidiary – manufactures, tests, and assembles optoelectronics products like LEDs, LED displays, IR sensors and opto-couplers. These products are mainly for use in data centres as well as the aerospace, defence, industrial automation and automotive industries. The optoelectronics segment as a whole makes up 50-60% of Inari Amertron’s FY13 consolidated sales, with net margins typically stable at 4-6%. Amertron Global currently operates from three plants, ie one in Jiangsu, China, and the other two in Clark Field and Paranaque in the Philippines. Currently its major customers under this segment are Avago and Osram (OSR GR, NR), making up estimated segmental sales of 70% and 20% respectively. Given that demand for Inari Amertron’s existing products under this segment is relatively stable, we are forecasting for growth of mid to high single digits per annum going forward.

ETM ODM. To further diversify its earnings base, Inari Amertron has ventured into the ETM business via 51%-owned Ceedtec. Notably, the latter is being incubated to become an ODM for Agilent, a leader in the design, development and manufacturing of electronic test and measurement products. Ceedtec currently operates from its manufacturing and test facility on Penang Island, taking into account the proximity to Agilent’s office in Bayan Lepas. Although contribution is relatively negligible at this juncture, we expect numbers to pick up substantially over the next two years, potentially contributing 5-13% of the bottomline. In addition, we believe Inari Amertron could potentially benefit from the Malaysian Government’s EconomicTransformation Programme (ETP), which is designed to transform the country into a high-income nation by 2020. Agilent was selected to champion one of the Entry Point Projects (EPPs) under the “building a test and measurement hub” category. Ceedtec was selected as one of Agilent’s local small and medium enterprise (SME) vendors. Management guided that over 15 new products are currently in the final developmental stage, with introduction in stages to Agilent from April. Some of these include automated test equipment for automotive applications, ie automotive functional test systems for anti-lock brakes (ABS) and engine control unit (ECU) testing. Others include precision bench-top power supply for laboratories and manufacturing testing.

Fibre optics. On top of that, Inari Amertron has also moved into research, design and manufacturing of fibre optic-related products via 100%-owned ISK. The group commenced production of new fibre optic products for Avago in January. Although revenue contribution is marginal at this juncture, as this is only the product pipeline’s initial phase, we are positive on management’s move to build its core competency in the increasingly prevalent and high demand fibre optics technology segment. Some of the new products that the group is working on include fibre optics transmitters and receivers for usage in the telecommunications industry, eg data centres and server switches. Going forward, we estimate that the revenue from this division to grow at 30-60% from FY15, which should translate into earnings contributions of 7-10%.

Posted by newbirds > 2014-06-07 23:15 | Report Abuse

Wow very exciting news on the card. Inari boleh!

Posted by newbirds > 2014-06-07 23:19 | Report Abuse

Don't play play inari is for the long haul bro, Hold it tightly......

Posted by Probability > 2014-06-07 23:37 | Report Abuse

Thanks Voonyoke...as usual you are so informative!
I just made a quick summary based on the above extracts/ inputs...there could be mistakes...but just glance through!

Assume sales & earning is proportional, i.e margin is is approx. the same for different segments:

1) integrated packaging and testing services
Under its integrated packaging and testing services (IPTS) division, which makes up 40-50% of its FY13 revenue
Going forward, we see this segment growing at 13-25% annually, driven by demand from the smartphone and tablet markets for RFICs.

Min: 0.4x0.13=0.052
Max 0.5x0.25=0.125

2) optoelectronics manufacturing, testing and assembly
The optoelectronics segment as a whole makes up 50-60% of Inari Amertron’s FY13 consolidated sales,
we are forecasting for growth of mid to high single digits per annum going forward.

assume sales & earning is proportional: and give 5-8% for the above statements

Min: 0.5x0.05=0.025
Max: 0.5x0.08=0.040

3) ETM equipment ODM
potentially contributing 5-13% of the bottomline.

Min: 0.05
Max: 0.13

4) fibre optics design and manufacturing
which should translate into earnings contributions of 7-10%.

Min: 0.07
Max: 0.10

MIN GROWTH: 0.052+0.025+0.05+0.07 = 0.197……20%
MAX GROWTH: 0.125+0.04+0.13+0.10 = 0.395…..40%

Using the PEG formula <1.0 for determining the minimum PE…for a earnings annual growth of 20%...it deserves PE of 20….superbly said wangge and jimstock …...it should hit 4.0!!

Posted by Probability > 2014-06-07 23:45 | Report Abuse

Voonyoke...anytime a newcomer comes and and ask some info on Inari....we shall just ask them refer to all your postings.
You will be like our Inari information database..he he he..thanks mate! :)

Posted by voonyoke > 2014-06-08 00:22 | Report Abuse

Hi Probability.
Thanks for your analysis.
The following is my analysis as well:
Revenue comes from
1) integrated packaging and testing services (40%)
2) optoelectronics manufacturing, testing and assembly (50%)
3) ETM equipment ODM and fibre optics design and manufacturing (10%)
Therefore we have to look at 1) and 2).
The profit margin for 1) is around 25% and 30% which is considered high. The profit margin for 2) is improved to 7% from 4%. It is expected to be improved further to 8-9% in the coming quarter.
Excluding the ESOS charge, the profit before tax for the latest quarter would be higher at RM29.3 million, representing a 10.1% increase from RM26.6 million in the preceding quarter.
So I expect profit before tax will increase at least 10% from quarter to quarter. It will increase at least 40% annually.
Not forgeting the pending demand on August for the Iphone 6 will be launched on September. I expect Earning per Share would be 7cents which will announce at Nov2014 for the Q12015. PE forward 15 (7 x 4 = 28 cents) is RM4.20.
So target RM4 is achieveable in the end of this year.

Posted by voonyoke > 2014-06-08 00:30 | Report Abuse

No problem, Probability.

Posted by Probability > 2014-06-08 00:43 | Report Abuse

Yes voonyoke i missed out the margin information on 2)optolectronics..
i didnt notice that earlier. On the profit margin improvement to 7% from 4%...and margin of 25-30% on (1) please share the source of these infos if possible. I will calculate again when i have sometime...

Posted by lee9fold > 2014-06-08 00:47 | Report Abuse

wow...i missed alot exciting action...count my vote!

Posted by voonyoke > 2014-06-08 01:05 | Report Abuse

Total revenue was RM191.8 million for the current quarter under review. The higher revenue was mainly due to the consolidation of Amertron Inc. (Global) Limited (“Amertron”), the acquisition of which was completed in June 2013 as well as higher trading volumes from the Group’s existing business units. Revenue contribution from Amertron was RM106.8 million.
Ametron contributed RM7.476 million (7%) profit before tax from RM106.8 million.
Existing business contributed RM21.824 million (RM29.3 million - RM7.474) from RM85 million (191.8-106.8). The profit margin is 26.7% (21.824/85*100%).

Posted by Probability > 2014-06-08 01:11 | Report Abuse

Wow..thanks voonyoke! I will dig all the infos later.
Good night..

Posted by wangge > 2014-06-08 01:13 | Report Abuse

I am watching Journey to the West!

TP RM4 End 2014! 9 votes

1. acdc, jimstock, buckbunny , wangge , newbirds!
2. Probability, angku, voonyoke, lee9fold.

Thanks Voonyoke/ probability RM4 PE20
forward looking EPS analysis.

Posted by BURSAMASTER > 2014-06-08 08:26 | Report Abuse

I heard there will be a bonus issue (quantum of bonus issue not revealed to me) together with rights and free warrant as sweetener

Posted by jimstock > 2014-06-08 08:55 | Report Abuse

Bmaster, timing?

Posted by newbirds > 2014-06-08 09:15 | Report Abuse

Bmaster how d bonus n right issue with free warrant is done pls explain.

Posted by wangge > 2014-06-08 09:25 | Report Abuse

Bonus is bonus, right and free warrant are $£€¥£€ fund raising vehicle.

Posted by BUCKBUNNY > 2014-06-08 09:27 | Report Abuse

JUST WAIT FOR THE FINANCIAL YEAR END REPORT AND GOOD NEWS,,NOT VERY FAR FROM NOW...HOLD TIGHTLY..

Posted by newbirds > 2014-06-08 10:07 | Report Abuse

Then what about the shares we are holding is it entitle for bonus issue to?

Posted by spfoo5719 > 2014-06-08 10:17 |

Post removed.Why?

Posted by BUCKBUNNY > 2014-06-08 12:07 | Report Abuse

ANNUAL REPORT ON THIS MONTH END..30TH.JUNE 2014..3 WEEKS FROM NOW...BE PATIRENT,,HOLD TIGHTLY..

Posted by BURSAMASTER > 2014-06-08 14:00 | Report Abuse

Bonus, Rights issue will only benefit the mother shares most. Warrants will benefit only if its is allowable in its charter. Most of the time, warrant holder will see the exercise price reduced proportionately with the quantum of bonus issue if it is allowable by the charter.
however, if only rights issue with free warrant won't benefit the warrant holder at all.

Posted by BURSAMASTER > 2014-06-08 14:02 | Report Abuse

Normally, if rights issue only; not good as it cause dilution in NTA & PE. So most company will give a sweetener in the form of free warrant and / or bonus issue to mitigate the interest lost by the existing shareholder.

Posted by voonyoke > 2014-06-08 14:20 | Report Abuse

Personally, I don't think rights issue is necesssary unless it needs a lot of money for M&A for business expansion. For bonus issue, it is also not necessary as there is enough liquidity of share in the market and also the share price is not that high.

Posted by newbirds > 2014-06-08 15:53 | Report Abuse

So need to buy the right issue for the number of shares we hold and get free warrant or bonus. For right issue need to cough out $ but bonus is freeeeee.......

Posted by funvey > 2014-06-08 16:48 | Report Abuse

above rm4?

Posted by wangge > 2014-06-08 17:11 | Report Abuse

Yes for long term value investment.

If June/July/Aug hv show,
then the guided TP as:
End 2014 TP RM4
End 2015 TP RM5
End 2016 TP RM6

If June/July/Aug no show.
Sayonara. Just collect dividend quarterly!

Posted by billionhair > 2014-06-08 18:06 | Report Abuse

no show no show.... collect dividend will do..

Posted by slts > 2014-06-08 18:08 | Report Abuse

ahyoi..blow too much hot air
until syndicates also scare to goreng

Posted by billionhair > 2014-06-08 18:15 | Report Abuse

hahaha...

Posted by Probability > 2014-06-08 21:09 | Report Abuse

they say the volcano releases some hot steam and air..occasionally at first....
before the real 'magma' erupts...which is quite unpredictable!

Posted by BURSAMASTER > 2014-06-08 21:40 | Report Abuse

http://www.theedgemalaysia.com/business-news/293431-wall-st-week-ahead-sap-500-nearing-the-2k-summit.html

Posted by littleshark > 2014-06-08 22:00 | Report Abuse

Yes we all are inari supporters&hope inari can reach higher tp. Let us hope inari can breakthrough resistance wall rm3 this time.

Posted by voonyoke > 2014-06-08 22:05 | Report Abuse

slts, if the company's future fundamental not strong, no matter how we blow, its price won't up. If the company future fundamental remains stronger and stronger, its price will up also even we don't blow water.
In the end, we still have to refer the company fundamental. The export of electronic especially smartphone and tablet part will increase from quarter to quarter in this year and into next year. Therefore the future outlook of Inari is very bright.

Posted by voonyoke > 2014-06-08 22:09 | Report Abuse

Yes, littleshark. it will break 3. i strongly believe. if not, i will continue accumulate more.

Posted by wangge > 2014-06-08 22:52 | Report Abuse

If wangge not writing something, fingers also itchy, can't dig but can write!

The secret of success in longterm and value investment if
depending on TA and FA also not enough , you need to scan the
MACRO factor ( biz sector ) if it is favorable for next 5 to 10 years .
MICRO factor (economic recession or biz slow down or potential stronger rivals ),
if it is less impact ?

Most of us very lucky, the stock we invested is in perfect timing for both:
1. Macro factor - very solid
2. Micro factor - very solid

Happy trading and collecting !

Posted by newbirds > 2014-06-08 22:58 | Report Abuse

I like this counter bcos all sifu contribute info from the heart and I hope all will benefit from inari.

Posted by newbirds > 2014-06-08 23:05 | Report Abuse

We all have chosen n invested in inari if not we won't be in this forum. I believe the greatest challenge lies within us. It is our patience.....so hold tightly bro.

Posted by newbirds > 2014-06-08 23:09 | Report Abuse

and be rewarded.....thanks for all encouragement.

Posted by wangge > 2014-06-08 23:13 | Report Abuse

Newbirds I see you hv a lot enthusiasm and energy ! Your age below 25?

Posted by newbirds > 2014-06-08 23:15 | Report Abuse

no ya I am uncle liao. Haha.....

Posted by newbirds > 2014-06-08 23:27 | Report Abuse

everyday I am learning from u guys....happy trading.

Posted by lee9fold > 2014-06-08 23:29 | Report Abuse

all is my 前辈 here :D