The announcement below was made on 6th May 2021, just weeks before 0166 INARI release its Q3 quarterly results.
Check out the full announcement here:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=114543&name=EA_GA_ATTACHMENTS
This private placement could raise a potential RM 1.065 billion for Inari, which is one of the biggest private placement in recent times.
Let's see the what's the plan for raising such a huge sum:
And the rationale behind:
And some prospect update from the company:
I'm currently holding 80 lots of 0166 INARI which I bought in year 2019, when INARI's revenue and profit was declining due to the slow down in Iphone's sales globally.
My view on this private placement:
1. Timely exercise amid global chip shortage. The world is running out of chips for quite a while now. The rising demand for electronics like smartphones, personal computers and laptops, gaming consoles, cars etc. causing the demand for semiconductors to outstrip supply. The semiconductor foundries around the world had plans to ramp up their capacity but these new factories will only be ready in 2 years times. Global Foundries:
TSMC:
Intel:
Samsung:
For INARI, this global chip shortage represents an opportunity to gain new customers. As mentioned in the announcement, certain commitment is required in order to secure new customers. Furthermore, Public Invest and Aminvest also highlighted that INARI has been talking to some potential customers. The additional funds will put INARI in the front-seat in securing new customers.
Public Invest Link: https://cdn1.i3investor.com/my/files/dfgs88n/2021/05/07/1536488854-1583241419.pdf
2. Further expansion on its RF lines and other production lines. The new funds will come in handy when there is a need to further increase their capacity for the radio-frequency (RF) filters production line. As of December 2020, all the new 14 system-in-package (SiP) lines were commissioned, bringing the total SiP lines to 22 nos. In tandem with the high demand for Apple's latest 5G smartphone, the demand for INARI's RF filters may continue to remain at a high level. You may read more about RF filter's outlook here in this Public Invest's report.
As mentioned in point No.1, foundries around the world are building new plants to meet the demand for semiconductors. These upcoming increased capacity will boost the demand for OSAT players like INARI. With the extra funds raised, INARI can ramp up their production capacity to meet the demand when necessary. Given INARI's prudent capital investment in the previous years, we can rest assured that the additional funds will be put into work accordingly.
3. Merger and Acquisition. Amid this super semiconductor upcycle, M&A is the fastest way for INARI to expand. Given INARI's conservative M&A track record, I believe the management will try their very best to ensure that any M&A made will bring good values to the shareholders. At this moment, INARI has not identify any investments yet, but has signal that any acquisition will be within the OSAT related companies. However, we should take note that evaluation for such companies will be at the higher side due to the current upcycle.
4. Raise huge funds by placing additional 10% of share only. Due to the recent hike in INARI's share price, INARI is able to raise a potential RM 1.07 billion by placing an additional 10% of share only. This is a great way to capitalize on the company's share price, and also the fastest way to raise fund compared to other method like issuing warrants or right issues.
5. To maintain their high dividend pay out while expanding at the same time. Many question the proposed private placement as Inari is not short of cash. According to the latest filing, INARI is currently sitting with cash in excess of RM 750 million, with negligible debt. I agreed that INARI is cash rich, but I don't think it's a good idea to utilize their cash reserve as the potential expansion and M&A might stretch INARI's balance sheet a little bit too far. Besides, INARI has been very generous in their dividend pay out, paying up to 91% of their PAT in FY2020 as dividend. By doing a private placement (additional 10%), we can expect INARI to continue their generous dividend pay out and at the same time continue to grow amid this super upcycle.
6. EPS dilution. Earning dilution is inevitable, the question is can this private placement bring higher growth to INARI? According to various analyst report, INARI's earning is expected to be diluted by approx. 9-11% (TA Securities Research & RHB Research: 9.1%; Public Invest: 11%; AmInvest: 7.6%). I'm pretty confident with INARI's management as they had showcased that they are capable to create values for shareholders continuously and hence I'm not too bothered with the earning dilution as long as the funds were well utilized to expand the comapny.
Here's some links which I think is informative:
Public Invest:
The Edge:
INARI closed at RM 3.20 on 7th May 2021, and I'm currently sitting on a +124% gain including dividends.
Disclaimer: This is a personal opinion recorded for my personal record. Nothing on this Blog constitutes investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. The author shall not be held accountable for any investment decision made by the reader. Invest at your own risk.
以下公告于2021年5月6日公布，距离0166 INARI即将公布的Q3季报还有大约两个星期。
完整公告在以下链接：
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=114543&name=EA_GA_ATTACHMENTS
这次的私下配股有可能为INARI筹得接近RM 11亿的资金，也是近年来数额最为庞大的私下配股。
来看看这次筹募资金的用途：
以及背后的原因：
公司前景的一些更新：
我目前持有0166 INARI 8000股，是我在2019年Iphone效率下滑而导致INARI营收跟着下滑的时候买入。
我个人对这次私下配股的看法：
1. 在全球芯片短缺的情况下适时的扩张。全世界面临的芯片荒已经有相当一段时间了。智能手机，个人计算机和笔记本电脑，游戏机，汽车等电子产品的需求不断增长，导致对半导体的供不应求。世界各地的芯片厂都计划提高产能，但这些新工厂最快也只能在两年后投入运作。
对于INARI来说，这次的全球芯片荒是获得新客户的机会。如公告中所述，为了可以签下新客户，INARI需要做出一定的投资。此外，Public Invest和Aminvest也有说到INARI一直在与一些潜在客户进行交谈。额外的资金将使INARI在吸引新客户方面处于更好的位置。
2. 进一步扩大其射频（RF）产品生产线和其他生产线。当需要进一步增加其射RF滤波器生产线的产能时，新资金将可派上用场。截至2020年12月，所有新的14条系统级包装（SiP）生产线都已投入运作，使SiP总生产线达到22条。与苹果最新的5G智能手机的高需求并驾齐驱，INARI的RF滤波器的需求可能会继续保持于高水平。您可以在此公共投资报告中阅读有关RF滤波器前景的更多信息。
链接：
如第1点所述，世界各地的芯片商都在建造新工厂，以满足市场对半导体的需求。这些新增的产能将刺激像INARI这样的OSAT厂的需求。通过这次筹集到的资金，INARI可以在必要时提高其生产能力以满足需求。鉴于INARI过去几年审慎的资本投资，我们大可放心这笔额外的资金将会被充分的利用。
3. 合并与收购。在这个半导体的超级上升周期中，并购是INARI扩张的最快方法。鉴于INARI保守的并购记录，我相信管理层将尽最大努力确保任何并购都能为股东带来良好的价值。目前为止，INARI尚未确定任何的投资目标，但已表示任何收购将是在OSAT相关公司之内。但是，我们应该注意，由于当前的上升周期，对此类公司的估价将处于较高水平。
4. 仅通过分配额外10％的股份就筹得巨额资金。由于INARI的股价上涨，INARI仅通过增发10％的股份就能筹集潜在RM 10.7亿。与发行凭单或配售附加股等其他方法相比，这是资本化公司股价的好方法，也是筹集资金最快的方法。
5. 持续保持高股息派发率，同时扩张公司。许多人质疑这次的私募，原因是INARI并不缺现金。根据最新的文件，INARI目前坐拥超过RM 7.5亿的现金，而且几乎没有债务。我认同INARI拥有大量现金储备，但我认为利用其现金储备并不是一个好主意，因为潜在的扩张和并购可能会使INARI的财务过于吃紧。此外，INARI一直都非常慷慨地派发股息，在2020财年派发的股息相等于税后净利的91%。通过私募，我们可以预期INARI将继续慷慨地派发股息，同时也可以在这个超级上升周期中继续增长。
6. 每股盈利的稀释。每股收益稀释是不可避免的，问题是这次的私募能否为INARI带来更高的增长？根据各种分析师的报告，预计INARI的收入将被稀释约 9-11％（TA证券研究和RHB研究：9.1％；Public Invest：11％； AmInvest：7.6％）。我对INARI的管理层充满信心，因为他们已经展示出他们有能力不断为股东创造价值。因此，只要资金被充分利用来扩大公司规模，那么收益稀释就不会有太大的问题。
以下链接可以作为参考：
Public Invest:
The Edge:
INARI在2021年5月7日收在RM 3.20，而我目前的盈利包括股息为124%。
免责声明：这只是个人意见，记录下来供我个人使用。此博客上的任何内容均不构成投资建议，绩效数据或任何建议，任何证券，证券组合，投资产品，交易或投资策略均适合任何特定人士的建议。作者对读者做出的任何投资决定概不负责。投资风险自负。