Semiconductor's bright outlook paves way for Inari Amertron
KUCHING: Semiconductor player's Inari Amertron Bhd's (Inari) normalised earnings for its third quarter of financial year 2022 (3QFY22) jumped by 20.7 per cent year on year (y-o-y) to RM86.5 million.
Meanwhile, revenue in 3QFY22 grew by 5.1 per cent y-o-y to RM360.3 million.
This led to Inari's 9MFY22 normalised earnings of RM298.8 million for the first nine months of FY22.
Analysts with MIDF Amanah Investment Bank Bhd (MIDF Research) said the increase in earnings was mainly contributed by higher cumulative revenue of RM1.21 billion as volume loadings remain solid, additional interest income from fund placement and favorable forex exchange rates.
“Meanwhile, the group 9MFY22's financial performance came within our but below consensus expectations, accounting for 72 and 63 per cent of full year FY22 earnings estimates respectively,” it added.
“As earnings came in line with our expectation, we made no changes to our revenue and earnings estimates.
“We also maintain our target price of RM4.55, premised on unchanged FY23 EPS of 15.1 sen against forward price earnings ratio of 30.1 times which is in line with the group's twoyear historical average of 30 times.
“We view that the valuation is justified due to an anticipation of continued upcycle in the semiconductor industry.”
Despite the heavily dampened situation of Covid-19 lockdown in China and the still ongoing conflict in Ukraine, MIDF Research opine that the group's volume loadings will continue to grow momentously, especially from the RF segment as it is highly needed in 5G technology adoption.
On a global scale, Kenanga Investment Bank Bhd (Kenanga Research) was of the view that the growth in the smartphone market will likely remain tepid which is evident by the back-to-back decline in global smartphone shipment in 4Q21 and 1Q22.