Inari, Unisem up on positive global semiconductor market

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KUALA LUMPUR (Feb 7): Shares of electronic-component manufacturers Inari Amertron Bhd and Unisem (M) Bhd rose with the broader market and after US-based SEMI said worldwide silicon wafer area shipments in 2017 increased 10% from a year earlier.

US-based SEMI is a global industry association serving the manufacturing supply chain for electronic-based industries including semiconductors and photovoltaics, according to SEMI's website. "Silicon wafer area shipments in 2017 totalled 11,810 million square inches (MSI), up from the previous market high of 10,738 million square inches shipped during 2016," SEMI said.

At Bursa Malaysia today, Inari shares climbed 16 sen to RM3.29 at 11:25am, while Unisem was up 12 sen at RM2.86. At 11:57am, the FBM KLCI rose 25.49 points to 1,837.94 points.

AmInvestment Bank Bhd wrote in a note today: "We maintain HOLD on Inari with a revised fair value of RM2.80/share (previously RM3.00/share), pegged to an unchanged FY19F PE (price-earnings ratio) of 18x. We have trimmed our FY18F-FY20F net profit forecasts by 7-8% mainly on account of a revision in our USD/MYR assumption from 4.12 to 3.95."

On Unisem, AmInvestment said: "We maintain HOLD on Unisem with a revised fair value of RM2.85/share (previously RM3.32/share), pegged to an unchanged PE of 13x. We have rolled forward our earnings base from FY18F to FY19F."