Posted by johnny cash > 2015-07-10 07:40 | Report Abuse

DNA for strategic acquisitions
Since its listing in 2011, the group’s earnings have grown fivefold from
RM19.4m in FY11 to RM99.2m in FY14, partly due to its strength in
earnings-accretive acquisitions. Over the past 3-4 years, the company has made
a few strategic acquisitions. It completed the acquisition of a 51% stake in
Ceedtec in 2012 at an estimated cost of about RM4m. Ceedtec provides
electronics testing and measurement equipment for the Agilent group in the
automotive and laboratory applications. Ceedtec contributed about 5% of the
group’s revenue in FY14.
Inari also acquired Amertron Inc. (Global) Limited for US$32m (RM103m) in
2013. The acquisition of Amertron helped Inari to diversify its product offerings
to optoelectronics manufacturing and fibre-optic assembly and diversify its
customer base. Amertron’s portfolio mainly comprises fibre optics products,
infrared and LED-based optoelectronics and IC packaging. Amertron’s main
clients are Avago and Osram, making up 70% and 20% of Amertron sales
respectively. Amertron has two manufacturing plants in the Philippines and
one in China. Following the consolidation last year, Amertron became the
largest revenue contributor, making up 55% of the group’s revenue in FY14.
In addition to strategic acquisitions, Inari also set up its own research &
development and manufacturing activities in fibre optics components in Inari
South Keytech in 2012.

Posted by johnny cash > 2015-07-10 07:40 | Report Abuse

Amertron contributed approximately 55% of group revenue in FY14, followed
by the RF segment with 39%. The remaining 6% came from Ceedtec and ISK.
Management expects revenue from RF, Ceedtec and ISK to trump that of the
Amertron segment in FY15, with 55% of group revenue coming from the three
units due to stronger growth from wireless devices such as smartphones
compared to 45% from Amertron.

Posted by johnny cash > 2015-07-10 07:41 | Report Abuse

We are encouraged by the gradual improvement in group EBITDA margin since
Sep 2013, the result of better operating efficiency at the Amertron facilities and
various cost-saving exercises carried out by management in the past 18 months.
Management remains optimistic that Amertron’s PAT margin can improve to
about 10% from the 6-8% level currently.
For 9MFY15, Inari’s core net profit surge 64% yoy from RM68.3m to RM112.2m
driven by higher contribution from RF segment and better operating margin
from Amertron. Nevertheless, the group earnings in 3QFY15 fell by 6% qoq
from RM40.3m to RM38.1 partly due to seasonal weakness in industry demand
and capacity constraints from its key customer. However, Inari earnings is
expected to improve in 4QFY15 driven by seasonal pick-up in industry demand
and we foresee further earnings improvements in 2HCY15 following additional
wafer capacity from its key customer and maiden contribution from its P13
plant.

Posted by johnny cash > 2015-07-10 07:41 | Report Abuse

Apart from that, Inari has, with the help of its diversified exposure, achieved a
commendable track record of steady earnings growth relative to its domestic
peers like MPI and Unisem which were affected by the downturn in global
semiconductor sales in 2011-13.

Posted by johnny cash > 2015-07-10 07:41 | Report Abuse

Inari-Amertron owes its strong earnings growth over the past 3-4 years largely
to the robust performance of its key customer, Avago. Avago, a leading designer,
developer and global supplier of a broad range of analog semiconductors,
operates in four markets: 1) wireless communications, 2) wired infrastructure,
3) enterprise storage, and 4) industrial & others.
Avago has a strong position in the smartphone RF segment, mainly due to its
proprietary technology called film bulk acoustic resonator (FBAR) filter. We
understand the FBAR filters have a superior performance in blocking unwanted
signals from being transmitted to the smartphone and reducing the insertion
loss. This provides better voice and data quality. The FBAR filters also enable
multi-band capabilities that allow the smartphone to operate over various
frequency bands across multiple regions around the world. Avago expects to see
continued growth in FBAR filter demand, fuelled by complex filter
requirements on the back of the global shift towards 4G/LTE networks. We
understand that Avago supports as many as 15 different bands with the FBAR
products.

Posted by johnny cash > 2015-07-10 07:42 | Report Abuse

Room for another leg-up
Inari-Amertron’s share price performance since its listing in 2011 has been
stellar, rising some 770% in the last four years, which tracks its impressive
2011-14 earnings CAGR of 72%. YTD, its share price is up 40%, slightly above
the sector average of about 39%.

Posted by johnny cash > 2015-07-10 07:43 | Report Abuse

CIMB STARTING COVERAGE ON INARI,, TARGET PRICE 4.50

Posted by bwulf > 2015-07-10 10:07 | Report Abuse

@johnny, can you please share the research report to us?

Posted by TomyamGong > 2015-07-10 15:09 | Report Abuse

normally after CIMB give TP sure sibeh jia lat one .. they always lead people to holland.

Posted by jeannie > 2015-07-13 11:30 | Report Abuse

coz they want people to invest, always give the lausai tips eh la.

Posted by Farge168 > 2015-07-13 15:48 | Report Abuse

Great,moving towards 3.58 again!

Posted by Novice168 > 2015-07-15 20:42 | Report Abuse

when will Inari due to announce this quarter's earning? If another record, then price may reach RM4.

Posted by Novice168 > 2015-07-15 20:44 | Report Abuse

I agree with with TomyamGong and jeannie, CIMB not trust worthy! Had my fingers burnt with their tips.

Posted by Xu Yu Fu > 2015-07-16 14:54 | Report Abuse

There is announcement on Exercise of Warrants on 15-07-2015. Will this affect the share price?

Posted by deechan > 2015-07-19 01:40 | Report Abuse

When many analysts starts to recommend a stock, watch out. Many IBs were recommending, Skpetro, Airasia, Tenaga, see where these have headed?

Posted by angku > 2015-07-21 18:00 | Report Abuse

sleeping...zzz

Posted by Invest_168 > 2015-07-21 23:20 | Report Abuse

The share price will follow the company's earning. If the coming Q4 results will hit the new record high? Let's wait and see.

Posted by bwulf > 2015-07-22 12:26 | Report Abuse

agreed. wait for next month earning result.

Posted by kay78 > 2015-07-23 09:50 | Report Abuse

from these 2 days earnings result, US tech stock not doing well.

Posted by raysim88 > 2015-07-30 09:41 | Report Abuse

sideways so long already...when can uptrend again?

Posted by kevin5059 > 2015-07-31 10:15 | Report Abuse

It look like technology sector is hitting the saturation region, when every analysts said BUY with extra ordinary TP, it is the time to sell....

Just my 2 cents

Posted by TomyamGong > 2015-07-31 10:34 | Report Abuse

Inari is too hot to burst now ?

Posted by ilovestock > 2015-07-31 13:53 | Report Abuse

looking at other tech stock recent result, their revenue starts to show saturation, some show decline vs previous year. Seem like low ringgit vs USD advantage is reaching its limit soon.

Posted by dalpinia > 2015-08-05 11:56 | Report Abuse

For example good tech stocks like: Elsoft, MPI, JCY, SAM would be the new star!!!

Posted by dalpinia > 2015-08-05 11:56 | Report Abuse

not forget ECS....

Posted by ggg123 > 2015-08-06 15:58 | Report Abuse

Why is ECSa new star?

Posted by Farge168 > 2015-08-07 10:50 | Report Abuse

Wait till it drop below 3.20 to collect!

Posted by kevin5059 > 2015-08-07 11:15 | Report Abuse

It look like the knife is falling toward 3.20..

Posted by TuaHuat > 2015-08-07 12:36 | Report Abuse

Y? I tot US$ up, it helps this counter

Posted by SkyWalk > 2015-08-07 13:14 | Report Abuse

Us up benefit counter

Posted by Farge168 > 2015-08-07 15:46 | Report Abuse

will drop below 3.20 for sure.As usual,whenever market down or uncertainties arises,directors will start selling down to recover some cash.That also explained why the selling down is done slow & steadily.If foreign fund selling,they will dump rapidly & price will drop sharply.

Posted by bluesky908 > 2015-08-07 17:20 | Report Abuse

Y drop so much?usd up benefit to inari.

Posted by TuaHuat > 2015-08-07 18:06 | Report Abuse

I guess the whole market is in panic mode.

Posted by micsoh > 2015-08-07 23:20 | Report Abuse

oil crush, china economi down, and u knowlah what happen in our country, made entry at the wrong time, i don't know how long this perfect storm gonna take.shuelah.

Posted by Machho > 2015-08-09 10:58 | Report Abuse

Rebound soon, drop too much ordy.

Posted by Machho > 2015-08-09 10:59 | Report Abuse

Or below 3.00 baru start collect...

Posted by Farge168 > 2015-08-10 10:57 | Report Abuse

Thanks to Ah Jib Gor,may be can get below 3.00 today,just wait....

Posted by MoreMoreMoreMoney > 2015-08-10 11:14 | Report Abuse

Our leader had done perfectly well, the best ever, no question ask. Thank you !!!

Posted by 1mocca > 2015-08-11 10:58 | Report Abuse

vroom

Posted by jgoh > 2015-08-11 11:40 | Report Abuse

just wonder how thick is his face...he still can act like nth wrong with JIB..huhu, need give JIB a thumb

Posted by jeannie > 2015-08-11 11:45 | Report Abuse

keep coming down..buy and keep long terms

Posted by sbg3106 > 2015-08-11 14:22 | Report Abuse

very strong resilient stock

Posted by TuaHuat > 2015-08-11 14:25 | Report Abuse

Harap naik naik nanti

Posted by hoplanner > 2015-08-11 15:35 | Report Abuse

Good stock to keep

Posted by sbg3106 > 2015-08-11 17:13 | Report Abuse

yes, good stock to keep

Posted by bluesky908 > 2015-08-11 17:25 | Report Abuse

Buy n keep

Posted by Farge168 > 2015-08-12 11:04 | Report Abuse

It seems like KLCI will drop below 1600 in few days time,should gradually buy & keep for long term.

Posted by Farge168 > 2015-08-12 11:06 | Report Abuse

For Ringgit & KLCI,NO LOW,BUT LOWER.........

Posted by jlh14 > 2015-08-12 11:54 | Report Abuse

Wait for support level 2.70-2.80

Posted by winston1 > 2015-08-12 13:05 | Report Abuse

Even good stock will drop when there is a meltdown. Keeping cash is better.