Hot Stock - Insas up as much as 9% due to Inari’s R&D, training grant

KUALA LUMPUR (Mar 31): Insas Bhd rose as much as 9% due to its 34% interest in Inari Amertron Bhd, which was awarded research and development (R&D) and training grants last week.

At 11.15 am today, Insas gained 8 sen or 6.6% to RM1.29. The top active counter saw trades of some 49 millions shares.

SJ Securities Sdn Bhd’s senior remisier Goh Kay Chong told theedgemalaysia.com that Insas’ active movement today could be due to the research & development and training grants awarded to Inari last week worth approximately RM10 million.

“The increase in value in Inari will also increase value in Insas,” he said over the telephone.

A dealer familiar with Insas concurred as saying the firm’s shares are heavily traded due to its interest in Inari, but added Insas is undervalued.

“Insas is undervalued as its net tangible asset per share stands at RM1.71,” the dealer told over the telephone.
“However, we think the stock is pricey as it is trading at a price earnings ratio of 14 times,” the dealer added.

SJ Securities’ Goh said Insas has reaped RM10 million worth of dividend revenue from Inari. He also said Insas has a healthy net cash position of RM150 million.

Meanwhile, Kenanga Research in a note today said Insas would see immediate technical support and resistance levels at RM1.16 and RM1.24 respectively.

Written by Jeffrey Tan of theedgemalaysia.com