Thursday, February 6, 2014


It expects to make the leap to the Main Market of Bursa Malaysia by as early as the first half of 2014. Inari Amertron has a forward PER of less than 10 times (Feb 2014) as opposed to the Main Market's PER of just above 17 times. For its 2013 financial year, its net profit expanded by more than 100% to RM41.24 million from RM19.28 million last year.

The company has prepared a war chest of as much as RM40 million to expand its capacity.

Inari Amertron is an indirect supplier of parts for Apple Corps Ltd's popular iPhone and iPad products.

Inari Amertron, an electronic manufacturing services player with high exposure to the smart phone and tablet segment within the semiconductor industry, has remained profitable for the last five financial years.

With its recent acquisition of Amertron Global, the group has extended its portfolio from mainly focusing in the S&T segment to the aerospace, defense and automotive industries. This enables the group to ride on the strong wave of the S&T upcycle as well as capitalize on the defensive qualities of the matured high volume semiconductor industries.

If to strip out Amertron’s top line growth, its revenue still grew organically by 39% year on year underpinned by its continual capacity expansion. While the lower blended NP margin post consolidation, the margin could improve further with the higher operational efficiency, going forward, amidst the integration of operations.

Inari’s bread and butter business, that is the assembly of RF chips for Avago Technologies (comprising about 75% of total revenue), has made it a direct proxy to the fast growing S&T segment. With LTE Evolution being the next wave of evolution, Inari’s expertise in RF products has positioned itself well for the next growth phase.

Post Amertron acquisition, the group’s net gearing still remains low at 0.16 times.

With its sustainable earnings profile, the group can offer higher dividend yield.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.