PETALING JAYA: Inari Amertron Bhd is working on five key projects with five new customers as part of its next-growth phase beyond the financial year ending June 30, 2022 (FY22).

       The technology company told analysts at a recent briefing that the projects were making good progress with some already in production and slated for production in the near term.

       These projects included a power-related system-on-module (SOM) for automotive; optical transceiver module; high-power LED package; double-sided moulding (DSM) system in package for radio frequency (RF); and advanced embedded material.

       TA Research said these newer projects were expected to add 5%-8% to Inari’s revenue in FY22, according to the company’s guidance.

       It has maintained its “buy” recommendation on Inari, with a target price of RM4.25 based on a price-earnings (P/E) multiple of 39 times against 2022 estimated vis-a-vis to the stock’s five-year average of 27.8 times.

       Meanwhile, CGS-CIMB Research noted that Inari had earmarked RM100mil as capital expenditure in FY22 for investment in a new technology platform, capacity expansion and value-added processes, such as electromagnetic interference shield coating and DSM system in package for RF chips.

       “We see the SOM division as a new growth driver for Inari to expand its exposure in the automotive segment,” it said, noting that Inari had secured a new customer in the high-power LED segment, which was expected to commence production in the fourth quarter of 2022. It has reiterated its “add” call on Inari, with an unchanged target price of RM4.30 based on 33 times the estimated P/E for 2023.