Wednesday 27 August 2014

Inari: Ends FY14 With A WOW

Inari FY14Q4 Financial Results

INARI FY14Q4 FY14Q3 FY14Q2 FY14Q1 FY13Q4
Revenue 223.9 191.8 186.6 191.3 67.6
PBT 31.4 27.2 26.6 22.1 13.5
PBT% 14.0 14.2 14.3 11.6 20.0
PAT 30.8 25.0 24.4 21.0 13.1






Total Equity 260.2 231.1 202.2 176.8 153.4
Total Assets 487.5 461.4 438.8 406.2 366.4
Trade Receivables 137.3 131.8 123.5 121.1 93.0
Inventories 37.8 137.7 126.2 107.4 105.5
Cash 65.3 53.2 60.0 48.9 44.6






Total Liabilities 226.9 231.1 236.9 230.0 213.8
Trade Payables 120.0 118.4 131.2 138.7 120.2
ST Borrowings 36.4 33.0 26.2 19.6 20.4
LT Borrowings 18.6 15.8 16.4 17.8 10.3






Net Cash Flow 20.9 8.8 15.3 4.3 3.8
Operation 41.2 12.4 11.5 7.2 86.3
Investment -43.4 -30.4 -14.5 -9.6 -112.2
Financing 23.0 26.9 18.4 6.8 29.7






EPS 6.23 5.19 5.31 4.70 3.69
NTA 0.46


0.35
Net D/E Ratio Net cash Net cash Net cash Net cash Net cash


As expected, Inari has just released its best ever quarterly result in which revenue & PAT improve 16.7% & 23.2% respectively QoQ.

It is mentioned that if not because of ESOS charge, PBT of FY14Q4 & FY14Q3 will be RM2.0mil & RM2.1mil more.

Overall it is a great ending to its FY14. Looking ahead of FY15, the management "looks forward to improving on its current level of performance in the EMS industry".

Because of the consolidation of Amertron, FY14's revenue surges 229% to RM793.7 compared to FY13. At the same time, PATAMI also grows impressively at 141% to RM101.3mil, slightly above my prediction of RM95mil.

It still keeps its net cash position despite aggressive CAPEX, thanks to good cash flow from operation. FY14's ROE stands at a remarkable 38.9%.


INARI (RM mil) FY14 FY13 FY12 FY11
Revenue 793.7 241.1 180.8 119.6
Revenue growth % 229.2 33.3 51.2
PBT 107.2 43.3 20.3 20.5
PBT% 13.5 17.9 11.2 17.1
PAT 101.3 42.0 19.3 18.8
PAT growth % 141.2 117.6 2.7





EPS 21.42 12.32 6.06 11.21
ROE                         
38.9
27.4 23.3 41.4




Inari has declared a fourth & final interim single tier dividend of 1.8sen for FY14. There is no special dividend this time so this quarterly dividend is actually lower QoQ (2.0sen) & YoY (1.9sen).

Overall 6.8sen for FY14 represents about 40% payout, with a yield of 2.1% at share price of RM3.23.

It has recently purchased a 5.05-acre leasehold land in Batu Kawan and a 2-storey 166k sq ft factory on a 5.5-acre leasehold land in Bayan Lepas for business expansion. So it should not give out too much as dividend.


 (sen) FY14 FY13 FY12
1st 1.1 (0.4) 0.8 0.6
2nd 1.1 (0.4) 0.9 0.6
3rd 1.2 (0.8) 0.9 0.8
4th 1.8 1.0 (0.9) 0.8


At RM101.3mil, Inari's EPS for FY14 is 17.8sen with a PE ratio of 18.1x.

As it is still in an expansion mode, I think it can achieve better performance in FY15, perhaps RM120mil net profit. 

Base on current total shares of 570mil, projected FY15 EPS will be 21.1sen, with target price of RM3.16 base on PE ratio of 15x.

Even though current share price is above my target price, I will not sell Inari at this moment as it has great potential for growth. I feel that the excitement does not stop here.





No comments:

Post a Comment