Inari would be adding more system in package (SiP) lines to a total of 22, representing a 2.75 times expansion, said its analyst Samuel Tan.

He said in a report yesterday the current 80 per cent utilisation rate was expected to be ramped up to 95 per cent, attributed to the strong RF loading volume in the latest 5G smartphones.

He said overdue replacement cycle was expected to drive demand for 5G smartphones, making them a future-proof upgrade among consumers.

“The top three smartphones in circulation are four to five-year-old models that are due for replacement.

“These latest models support 5G technology and were launched at the same price point as their predecessors. Thus, this is likely entice more consumers to upgrade.” Tan said Inari had managed to acquire new customers despite the current challenging period arising from the Covid-19 pandemic.

Inari has started back-end testing of optical transceivers for a Hong Kong-based customer.

“The group has also been working with a Swiss company on sub-module assembly for the impedance matching network equipment.” Meanwhile, Tan said Inari had ventured into Outsourced Semiconductor Assembly and Test (OSAT) equipment to increase revenue streams.

“Inari has formed a joint venture (JV) to collaborate on manufacturing OSAT equipment. For the initial stage, the JV will focus on developing customised equipment for Inari.

“Within a timeframe of one to two years, Inari targets to get qualified by more potential customers and register for intellectual property protection, which will allow the group to sell the equipment externally.” Kenanga Research has reiterated its “outperform” call on Inari with a higher target price of RM3.14 per share from RM2.50 previously.

• Inari Amertron Bhd