PETALING JAYA: Analysts say that this could be a transition year for Inari Amertron Bhd
as the group’s outlook turns more positive.
In a report, MBSB Research said there has been more clarity from the outsourced semiconductor assembly and test group about diversification efforts in relation to the proposed joint acquisition with China’s Sanan Optoelectronics Co Ltd of LED maker Lumileds Holding BV.
According to the research house, the associate stake will enable Inari to participate in Lumiled’s future growth prospects.
“Both Inari and Sanan will enter the international cross-licensing patent alliance led by Nichia, ams Osram, Cree LED, Lumileds and Toyoda Gose. A check on Lumiled’s website indicates that it has more than 5,700 patents including for MicroLEDs,” the research house said.
MicroLED technology is emerging as a promising solution for high-speed artificial intelligence data transmission and silicon photonics-based optical communication.
MBSB Research said it believes Inari’s management is confident that the necessary regulatory approval could be obtained by year-end which will pave the way for the completion of the deal by the first quarter of next year.
MBSB Research said it is maintaining its “neutral” call on Inari with a higher target price of RM2.12 from RM1.98.
