INARI 0166 Share Price

Inari Amertron Bhd’s growth momentum is expected to remain strong, driven by the advancement of the fifth-generation (5G) technology. Despite the challenges posed by the Covid-19 pandemic, the technology company will likely to continue posting healthy earnings for the financial year ending June 30,2021. Inari is currently developing its electromagnetic interference (EMI) shielding equipment, which is especially important for 5G technology, as 5G’s high frequency will lead to an increased level of interference

Kenanga Research has upgraded its target price on Inari Amertron with the return of foreign investors to Malaysia, which it expects to put the company into the limelight given its large overseas following. Inari stands out, given its 16-18% foreign shareholdings and also having one of the best international visibility among the Malaysian technology stocks. Kenanga added it is noteworthy that Inari has reached a new milestone by crossing the RM10bil mark cap last week, which reinforces its position as the Malaysian technology leader.

RHB Investment Bank Research today upped its target price for Inari Amertron Bhd to RM3.28 from RM2.87 as the former expects robust demand to continue for the latter into the first half of 2021 (1H21) on the increase in components for the latest range of 5G smartphones and strong sales which prompted a major phone maker to increase production. It reiterated its “buy” rating on the stock with a higher target price of RM3.28 based on an unchanged 37 times to FY22F target price-earnings (P/E) and dividend yield of about 2%. In a note today, RHB analyst Lee Meng Horng said with the additional capacity, margin improvement, and the alleviated worries over technological competitiveness, he continues to favour the stock as a proxy to the 5G trend.

According to Rakuten Trade Research vice-president Vincent Lau, The technology sector saw a recovery in earnings on the back of fulfilled backlog orders, demand driven by iPhone production and new 5G smartphones, as well as trade flows moving away from China. Inari Amertron Bhd reported its highest quarterly net profit in almost 11 quarters. The semiconductor company saw a 92.4% jump in net profit to RM69mil as compared to the preceding quarter. CGS-CIMB expects strong earnings recovery for Inari in the financial year 2021 (FY21), driven by higher demand for its radio frequency chips on the back of the new 5G smartphone launch by a United States-based smartphone player.

In Financial Year End 2020, the directors’ remuneration was 7.29 million. It was slightly high compared to average in listed companies, considering the employees’ remuneration of 194.2 million and auditor’s remuneration of 236 thousands

The Group’s revenue and PBT for the current quarter of RM242.6 million and RM35.1 million respectively, compared to the revenue and PBT of RM265.4 million and RM37.5 million respectively in the preceding quarter. The revenue decreased was due to lower volume loading quarter-on-quarter and lower of production volume at our China and Philippines plants resulted from the implementation of lockdowns to contain Covid-19. The decrease in PBT were mainly due to decrease in sales volume and changes in product mix.

In Financial Year End 2019, the directors’ remuneration was 8.25 million. It was slightly high compared to average in listed companies, considering the employees’ remuneration of 189.5 million and auditor’s remuneration of 240 thousands