Hot Stock Inari share price hits all-time high of RM3.22

by **Cals** Wed 09 Jul 2014, 08:52

Hot Stock Inari share price hits all-time high of RM3.22

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Tuesday, 08 July 2014 16:44

KUALA LUMPUR (July 8): Inari Amertron Bhd, whose share price has doubled since February, climbed to an all-time high of RM3.22, up 11 sen or 4.1% on expectation of continued strong earnings growth.

Affin Investment Bank is positive on the share price’s strong performance and believes that its prospects remain bright.

“Inari’s share price has outperformed the KLCI index by 92%. We expect Inari to post its fourth consecutive year of record earnings in FY14E and has forecast a 34% growth in core net profit for FY15E,” said analyst Chris Ong of Affin Investment Bank.

Ong maintains a “buy” call on Inari with a target price (TP) of RM4.26 per share.

Hong Leong Investment Bank is also positive on the company’s recently proposed renounceable rights issue.

The research house said that the proposed rights would see up to 88.8 million new shares issued with up to 88.8 million free detachable warrants.

Some RM60 to RM80 million from the rights issue proceeds will be allocated for plant extension, acquisition of land, factories, equipment and machineries to expand production capacity.

The balance RM20million will be used to repay bank borrowings and the remaining RM18 million to RM31 million will be used as working capital, according to Tan J Young of Hong Leong Investment Bank.

Tan has placed a “buy” call on the stock with a TP of RM3.41 per share.

Inari structured warrant, Inari-CA, issued by Kenanga Investment Bank topped the most active list with 79 million units traded.