MONEY MASTER

Maintain Buy call with unchanged Target Price (TP) of RM4.30 Inari Amertron Bhd Positive reinforcement to Inari’s new plant, P-21 We are positively surprised by the MYR100m matching grant awarded by MIDA; a testament to Inari’s capabilities. Look beyond temporary earnings weakness in 3QFY16 as Inari continues to offer long-term growth prospects. Our forecasts and MYR4.30 TP (17x CY17 EPS) are unchanged for now; reiterate Inari as the Top Pick of the sector for its improved earnings visibility and strong growth prospects. The biggest grant awarded by far Following the acquisition of the P-21 plant for the setting up of Inari Integrated Systems (IIS), a wholly-owned subsidiary of Inari, the Malaysian Investment Development Authority (MIDA) has granted MYR100m matching grant to Inari to upgrade its P-21 plant and for the purchase of equipment and machineries. This is to power Inari’s next growth engine in the areas of advanced communication chips and die preparation. ...

AFFIN HWANG: Buy on weakness; INARI - country's top pick for 2016 Inari’s share-price correction fully reflects a weak 3QFY16E, in our view. However, earnings should recover in 4QFY16E in tandem with a new product launch and, as such, we leave our EPS forecasts intact. Meanwhile, 2QFY16 earnings, due on 23 February, are likely to come within our expectations. Reaffirm BUY. A country top pick for 2016.  2QFY16 results scheduled for 23 February; we expect no surprises  Inari is scheduled to release its 2QFY16 results on the evening of 23 February. Negative surprises are unlikely despite the seasonally weaker quarter and also the slowdown in demand by a major smartphone manufacturer from December 2015. We anticipate a flattish set of earnings in 2QFY16E (1QFY16 core profit of RM42m). Meanwhile, any positive surprises will likely arise from the favourable strengthening of the US$ vis-à-vis the RM. We note that during the final quarter of 2015, the RM had depreciated some 5%...

TheEdge Markets has reported that global semiconductor sales fell 3% year-on-year in November last year, according to the US-based Semiconductor Industry Association (SIA). SIA, representing U.S. leadership in semiconductor manufacturing, design, and research, yesterday announced worldwide sales of semiconductors reached $28.9 billion for the month of November 2015, 0.3 percent lower than the previous month’s total of $29.0 billion and 3.0 percent down from the November 2014 total of $29.8 billion. All monthly sales numbers are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average. A drop in sales for global semiconductor sales, source: WSTS Source: http://www.design-reuse.com/news/38963/november-2015-semiconductor-sales.html Well, if you are looking at Bursa Malaysia, it is normal to look at the export stocks these days especially given how RM has dropped so much from just a year ago. The weakened Ri...