The share price of INARI – which has trended downwards from a peak of RM4.30 in late November 2021 – may extend its
technical rebound after bouncing off from a trough of RM2.36 in July this year, reports Kenaga.
According to the brocking house, the stock price is expected to continue its upward bias as the DMI Plus has cut above the DMI Minus and the MACD has crossed over the signal line. Thus, it believes that INARI’s share price will rise further to challenge the resistance levels of RM2.94 (R1; 10% upside potential) and RM3.05 (R2; 14% upside potential).
On the downside, Kenanga’s stop loss level has been identified at RM2.40 (representing a 10% downside risk). Fundamental-wise, INARI is involved in the electronics manufacturing services industry, providing Outsourced Semiconductor Assembly and Test niche services in Radio Frequency System in Package for smart mobile devices, fiber-optic transceivers, and other electronics manufacturing services.
INARI has announced revenue of RM360.3m (a 5% YoY increase) and a net profit of RM90.5m (a 10% YoY increase) in
3QFY22 thanks to higher contributions from all business segments. This took the group’s 9MFY22 bottom line to RM302m
(+28% YoY). Based on consensus estimates, INARI’s net earnings are projected to come in at RM393.9m in FY June 2022 and RM447.1m in FY June 2023, which translate to forward PERs of 25x and 22.1x, respectively.
