Inari Amertron says acquisition will boost earnings
BY LIZ LEE
KUALA LUMPUR: Inari Amertron Bhd believes its successful acquisition of Amertron Inc (Global) Ltd will add US$100mil (RM321mil) to its earnings in the financial year ending June 30, 2014 (FY14) based on its enlarged capacity.
Vice chairman Tan Seng Chuan said with Amertron on board, the group has more than doubled its manufacturing capacity, with its floor space increasing to 400,000 sq ft and its staff headcount from 1,500 to 4,600.
“While our highly-automated Penang operations have been producing low mix high volume (producing simpler devices), Amertron’s operations are more skilled with high mix low volume (producing more complex devices). We now cover both ends of the spectrum,” he said.
The electronic manufacturing services (EMS) provider is operating at 80% capacity utilisation rate and plans to be selective with its clientele base. It now has nine manufacturing plants – five in Penang, one in Iskandar Johor and three from Amertron’s assets in Kunshan, China, as well as Clark Field and Paranaque in the Philippines.
Tan said the group continued to be well-positioned as a semiconductor packaging services provider for the radio frequency mobile industry and in optoelectronics.
“The semiconductor industry has been not too bad, with the recovery in the United States,” he said, adding that by being in the smart device market Inari Amertron had been faring well compared with the players in the personal computer segment.
The group sought to transfer its listing status to the Main Market yesterday, appointing M&A Securities its principal advisor. It targets to be transferred in the fourth quarter of 2013.
Inari Amertron’s results have more than exceeded the minimum uninterrupted profit track record of RM20mil over the last three years, making it eligible for transfer to the Main Market.
Its three-year aggregated audited consolidated net profit was RM53.2mil from FY10 to FY12 while its nine months net profit for FY13 alone doubled to RM28.9mil from RM14.4mil a year ago.
Inari Amertron also intends to get on the radar of more institutional investors when it is on the Main Market.
Since listing in July 2011, the group has been quite low profile but in the past few months, it has managed to acquire Amertron from the Philippines on the strength of its steadily growing business.
Likewise, its share price which had been hovering around 30 sen since listing, climbed over the 70 sen threshold in the past two months. It closed half a sen higher at 73 sen yesterday.
Tan said the group continued to look for merger and acquisition opportunities but would dedicate the next twelve months to integrating Amertron’s operations.
Inari Amertron’s business makes about US$200mil, which is a fraction of the US$150bil global semiconductor industry.
The group was known as Inari Bhd prior to its Amertron acquisition which was completed last month.
Publish date: 09/07/13