KUALA LUMPUR: Fresh off record-high earnings in FY21, there are expectations of yet another record year in FY22 on the back of sustainable growth in RF content and 5G smartphone adoption.

       According to RHB Research, Inari is expected to sustain earnings growth into FY22 given the rising adoption of 5G smartphones and growing RF content as well as better contribution from the optoelectronic segment and contribution from new customers on-boarding.

       It added that the recent fund-raising exerise via private placement of RM1.03bil in proceeds fuelled its war chest to prepare for potential sizeable and value accretive M&A to support inorganic growth in the near term.

       "We increase FY21F-23F earnings by 8.4-9.3%, after imputing improved margins for the RF business, higher interest income, and enlarging the share base following the 333m share placement exercise.

       "As a result, our TP is now lowered to MYR4.27, pegged to an unchanged 40x FY22F P/E (+3SD from its 5-year mean)," said RHB.

       Inari remains the research house's sector top pic as it stands to benefit from the mid-term structural growth of the 5G story and growing demand for semiconductor chips, it added.

       In FY21, Inari's revenue of RM1.43bil and core earnings of RM324.2mil came in within expectations at 102% and 104.1% of its and consensus full-year estimates.

       It declared a fourth interim dividend o 2.5 sen a share, going ex on Sept 8, which brought year-to-date dividend per share to 11 sen.