【The Interesting Points of Inari】
😐Main point is at last 3 paragraphs!😐
Being one of the top OSAT companies 🏆 in the world 🌎and the current biggest technology stock 🦸♀️ in Bursa by market cap, a few investment banks ⛪️🛕🕍upgraded Inari's target price to around RM4😲😮.
Some important recap about Inari
🔥Main business🕍 include OSAT service🥌 for Radio Frequency (RF) chips📠, fiber-optics transceivers, optoelectronics🌟⚡️ and sensors.
🔥Rely heavily on two ✌️main customers, Broadcom (>75%of revenue) and Osram (>15%).
🔥Broadcom is the biggest supplier of Radio Frequency (RF) chips to Apple🍎☎️.
🔥Inari services Osram for iris-scanning technology👁.
🔥Theme related include 5G (RF) ☎️& Electric car 🚗(LED).
Next, let us briefly disect ✂️their QR result:
💰Profit
Last week, Inari released their Q2 result📄, showing net profit 💸of around 29% growth💪 from RM 70mil💸 last quarter to RM 90mil💸 this quarter, making their forward PE to be at around 33, which consider as a fair PE for a stock with more than 20% profit margin.
Ps, the forward PE is yet to consider the profit 💸 after expansion 🏭🏭🏭 and benefits they will gain 🤑due to booming of 5G☎️!
💰Cash
A wise man 👨🦲once said, large cash balances 💸💸💸 of a company 🏭don't happen by accident!
Looking at Inari's cash balance, it has grown 💪💪 from around RM 450 mil in 2017 to more than RM 750 mil today! With their consistent track record of capex utilization for expansion🏭🏭🏭, dividend payment 💸💸 and low in debt, you tell me how bad can the cash management of this company could be?
Furthermore, the company temporarily can be considered as high crisis immunity 😈👿company!
On theme😒, on trend😓, one of the top in the world🤔, good profit💸, low debt🤔, rich cash😓, good crisis resistance🧐 and fair valuation👨🦲, no wonder most of the investment banks rate highly on them!
Of course, if tech trend stumble🏃♂️, none of it will survive from the great drop📉. Thus, kindly be reminded to play safe👧!
Simply share. No buy sell recommendation.
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