{"id":40123,"date":"2018-06-13T08:32:21","date_gmt":"2018-06-13T00:32:21","guid":{"rendered":"https:\/\/investpenang.gov.my\/inaris-new-plants-seen-to-boost-earnings\/"},"modified":"2025-12-02T16:26:37","modified_gmt":"2025-12-02T08:26:37","slug":"inaris-new-plants-seen-to-boost-earnings","status":"publish","type":"post","link":"https:\/\/investpenang.gov.my\/zh-hans\/inaris-new-plants-seen-to-boost-earnings\/","title":{"rendered":"Inari\u2019s new plants seen to boost earnings"},"content":{"rendered":"

[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” el_class=”sec-inner-banner” css=”.vc_custom_1703741584745{background-image: url(https:\/\/investpenang.gov.my\/wp-content\/uploads\/2023\/12\/contact-banner-bg.jpg?id=20253) !important;}” z_index=””][vc_column][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=”” el_class=”inner-banner-row”][vc_column_inner][vc_column_text]<\/p>\n

Inari\u2019s new plants seen to boost earnings<\/h1>\n

[\/vc_column_text][vc_separator type=”normal” el_class=”red-separator” color=”#ee4023″ transparency=”1″ thickness=”2″ up=”15″ down=”15″][vc_column_text css=”” el_class=”white-text”]<\/p>\n

13 June 2018<\/p>\n

[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”grid” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern” css=”.vc_custom_1703764846254{background-color: #f3f5f8 !important;}” z_index=””][vc_column el_class=”fade-in animate”][vc_empty_space height=”120px” el_class=”height-x120″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=””][vc_column_inner][vc_single_image image=”29077″ img_size=”full” qode_css_animation=”” el_class=”single-featured-image”][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”60px” el_class=”height-x60″][vc_row_inner row_type=”row” type=”grid” text_align=”left” css_animation=”” el_class=”content-row”][vc_column_inner][vc_column_text]Inari Amertron Bhd<\/strong>
\n(June 12, RM2.26)<\/strong><\/p>\n

Maintain buy with a higher target price of RM2.80:\u00a0We are positive about Inari Amertron Bhd\u2019s aggressive floor space expansion to 1.35 million sq ft (120,000 sq m) [+34%] by end 2018. For this, we now impute job win assumption for P21 and P34 worth RM150 million and RM300 million for financial year 2019 (FY19) and FY20, ending June. We also raise radio frequency volumes in P13B-2 for the push for 5G cellular networks in 2019. These translate into a 10%\/20% increase in our earnings forecasts.<\/p>\n

From 1.01 million sq ft floor space currently, Inari plans to expand it to 1.35 million (+34%) by end 2018 with the completion of P13B-2 (120,000 sq ft) and P34-1 (220,000 sq ft). Into 2019, further expansion at P34 (P34-2 and P34-3, likely by mid-2019) and consolidation of P8 and Para\u00f1aque operations to P13B2 and CK2 respectively should lift floor space to 1.68 million sq ft. We now assume that Inari will secure additional job wins of RM150 million\/RM300 million for FY19\/FY20 underpinned by: i) new components outsourcing by Osram at P21 (for example mini light-emitting diode [LED], health sensor, replacement of infrared LED with vertical cavity surface-emitting laser \u2014 these should bring P21 floor space utilisation to 90% to 100% by end 2018); and ii) aggressive floor space expansion of P34.<\/p>\n

We do not rule out further outsourcing from Osram especially since it has commissioned the first phase of its wafer fabrication in Kulim, which will see more back-end semiconductor jobs being dished out in the future.<\/p>\n

On largely unchanged forecasts post third quarter of FY18, ending March, results briefing where Inari\u2019s expansion plans were conveyed, we believe that consensus has yet to price in Inari\u2019s aggressive floor space expansion. With the imminent commissioning of Inari\u2019s new plants and component wins announced recently, we believe an earnings upgrade by consensus is forthcoming.<\/p>\n

Among the technology hardware names in Malaysia, Inari, as the sector bellwether, is the first name to erase its share price loss in the first five months of 2018 (+4% year to date). At 18 times calendar year 2019 price-earnings ratio currently, valuations are still undemanding for a growth stock offering 30% three-year earnings compound annual growth rate. \u201cBuy\u201d. \u2014\u00a0Maybank IB Research<\/em>, June 11<\/p>\n

Source:\u00a0The Edge Markets<\/a><\/p>\n

Photo Credit: Inari Amertron[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_empty_space height=”120px” el_class=”height-x120″][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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13<\/h2>\n
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Wed<\/p>\n

June \u201818<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"author":2,"featured_media":29077,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[316],"tags":[],"news_year":[272],"news_month":[224],"local_insights_alphabet":[],"acf":[],"_links":{"self":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts\/40123"}],"collection":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/comments?post=40123"}],"version-history":[{"count":4,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts\/40123\/revisions"}],"predecessor-version":[{"id":40660,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/posts\/40123\/revisions\/40660"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/media\/29077"}],"wp:attachment":[{"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/media?parent=40123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/categories?post=40123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/tags?post=40123"},{"taxonomy":"news_year","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/news_year?post=40123"},{"taxonomy":"news_month","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/news_month?post=40123"},{"taxonomy":"local_insights_alphabet","embeddable":true,"href":"https:\/\/investpenang.gov.my\/zh-hans\/wp-json\/wp\/v2\/local_insights_alphabet?post=40123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}