Stock Name: INARI
Company Name: INARI BERHAD
KUALA LUMPUR: Newly-listed Inari Bhd was actively traded on Wednesday, July 20 and extended its gains at mid-morning in line with the upbeat market sentiment.
The stocks, which made its debut on the ACE Market of Bursa Malaysia on Tuesday, July 19, was up one sen to 45.5 sen at 11.25am with 10.76 million shares traded.
Inari through its subsidiary is an electronic manufacturing services (EMS) company mainly involved in back-end semiconductor packaging and complete Box-Build products.
RHB Research in a note July 18 said it forecast FY10-12 EPS CAGR of 10.3% for Inari mainly driven by: 1) higher sales volume of packaging services on the back of rising mobile phone and tablet demand; 2) contribution from back-end wafer services; and 3) stronger contribution from RF final testing in tandem with its packaging services and higher demand for stringent testing.
Given its niche in the communication segment, we believe this mitigates concerns of weaker-than-expected chip demand in other segments i.e. consumer electronics and PCs in the near term, it said.
'We believe it is fair to compare Inari to global peers (vs. local packaging peers) in RF solutions and wireless given that it is mainly focused on the communication segment.
'We have derived a target PER of 7x, which implies a 44% discount to the peers' weighted average to reflect its smaller market capitalisation. Thus, we estimate a fair value of 41 sen based on 7x CY12 EPS,' it said
Company Name: INARI BERHAD
| Research House: RHB | Price Call: HOLD | Target Price: 0.41 |
KUALA LUMPUR: Newly-listed Inari Bhd was actively traded on Wednesday, July 20 and extended its gains at mid-morning in line with the upbeat market sentiment.
The stocks, which made its debut on the ACE Market of Bursa Malaysia on Tuesday, July 19, was up one sen to 45.5 sen at 11.25am with 10.76 million shares traded.
Inari through its subsidiary is an electronic manufacturing services (EMS) company mainly involved in back-end semiconductor packaging and complete Box-Build products.
RHB Research in a note July 18 said it forecast FY10-12 EPS CAGR of 10.3% for Inari mainly driven by: 1) higher sales volume of packaging services on the back of rising mobile phone and tablet demand; 2) contribution from back-end wafer services; and 3) stronger contribution from RF final testing in tandem with its packaging services and higher demand for stringent testing.
Given its niche in the communication segment, we believe this mitigates concerns of weaker-than-expected chip demand in other segments i.e. consumer electronics and PCs in the near term, it said.
'We believe it is fair to compare Inari to global peers (vs. local packaging peers) in RF solutions and wireless given that it is mainly focused on the communication segment.
'We have derived a target PER of 7x, which implies a 44% discount to the peers' weighted average to reflect its smaller market capitalisation. Thus, we estimate a fair value of 41 sen based on 7x CY12 EPS,' it said
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