Inari Emerton Berhad’s (Inari) share price has been consolidating sideways around RM3.24, and a follow-through buying interest is expected in the near term, targeting RM3.50 to RM3.55, with a LT target at RM3.60.
“As the technical readings are positive, monitor for a breakout. Support is located around RM3.15 to RM3.20, while cut loss is at RM3.10,” Malacca Securities Sdn Bhd said today (Feb 14).
In its Technical Focus note, the independent research house said Inari’s earnings have been growing for two consecutive quarters.
“In 4Q23, the group’s net profit grew 15.5% quarter-on-quarter (QoQ) to RM66.3 million and expanded its net profit to RM85 million, an increase of 28.2% QoQ in 1Q24.
“This was mainly due to stronger revenue from the Radio Frequency (RF) segment. In the coming quarters, upcoming releases of new smartphone models may support the RF segment.
“Also, we believe the year-end festive shopping from consumers will drive up smartphone sales, which will generate a stronger demand for RF segment products amid the higher production volume of smartphones,” it said.
Malacca Securities also anticipated stronger industry outlook in 2024, which would help Inari’s earnings.
“Gartner published in its 3Q23 forecast that global semiconductor revenue is projected to grow at 16.8% in 2024, as demand rebounds.
“Furthermore, International Data Corporation (IDC) in its publication on 30 August 2023 reported that the worldwide smartphone shipments are forecasted to recover in 2024 at a pace of 4.5% year-YoY.
