RHB Research said that it has maintained a “Buy” recommendation for Inari Amerton Bhd with a target price of RM3.59.
It said that the YTD share price weakness of 36% was on the back of the sector’s de-rating on high inflation and rising yield expectations.
RHB said that the potential drop out from the KLCI also contributed to the negative sentiment overall.
The stockbroking firm said that it still believes that the valuation is attractive, having to revert to below its 5-year mean at only 24xFy23 P/E currently despite being well known OSAT player that is in the supply chain of the world-renowned smartphone brand.
RHB said that Inari’s growth and visibility stemming from the continued proliferation of 5G, its new China venture via a 55% JV with China FortuneTech Capital, and growing demand for semiconductor chips in general. “Our TP is inclusive of a 2% premium on its ESG score of 3.1,” it said
