KUALA LUMPUR (Sept 12): Inari's joint venture with PCL Technologies in Malaysia to secure, manage and manufacture optical transceivers and other related products is a positive, says Affin Hwang Capital. 

While the near-term profit contribution from the JV may not seem meaningful for Inari, the broker thinks that this could potentially be the first of many other opportunities for Inari.

Affin Hwang suspects that U.S.-China trade tensions could be a motive behind this partnership and hence believes that there could be greater outsourcing opportunities in Inari's future. Affin Hwang maintains a buy rating on Inari with an unchanged target price of RM1.79.