Friday 29 Mar 2024
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KUALA LUMPUR (Jan 19): AffinHwang Capital Research has mantained its “Buy” rating on Inari Amertron Bhd at RM2.90 with a higher target price of RM4.07 (from RM3.80) and said it was raising its FY15-17 EPS forecasts by 2%-11% to account for the earlier-than-expected ramp-up in Inari’s P13 facility.

In a note Monday, the research house said 150 new testers are estimated to be fully installed by October 2015.

It said prior to this, however, management had squeezed a further 50 testers into its existing plants, raising its test equipment to 522 units currently.

“Our raised forecasts also take into account a new wafer processing service which has been recently agreed with Avago.

“P13 has a production floor space of 160,000 sf versus Inari’s current space of 120,000 sf, which is nearly fully taken up.

“With the expansion in its radio frequency (RF) business, there is room for further margin upside. Maintain Buy with a higher target price of RM4.07,” it said.

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