With the first federal funds rate hike in March and persistently high inflation, long-term investors are having trouble adjusting their portfolios。In Malaysia, the stock market is not immune to uncertainty in global markets。While it may be safer to switch to some "value" stocks such as bank stocks, I think long-term investors should seize the opportunity to gradually build positions in specific growth stocks in Malaysia.。

Against this backdrop, Inari Amertron Berhad's strong performance。The semiconductor company's outlook remains bright, with its radio frequency (RF) business set to benefit from growing demand for 5G smartphones.。Moreover, Malaysia's largest outsourced semiconductor assembly and testing (OSAT) company, Inari, is recognized as one of the world's most valuable companies: Apple's key component supplier。Based on this, here are five reasons I think investors should buy after the semiconductor company's stock price falls。

1.Strong earnings growth

Despite lackluster share price performance, Inari maintains growth momentum。In the first half of fiscal 2022 (1H FY2022), Inari's revenue increased by 17%..5% to 8.RM51.4 billion (about 2.$01.8 billion), compared to 7.RM24.5 billion。In line with better revenue performance, the company's net profit increased by 33% over the same period..8% to 2.14.2 billion ringgit。The strong growth in its earnings also reflects its long-term growth.。Based on its rolling 12-month data on revenue and net profit over the past decade, Inari's revenue and net profit compound annual growth rates (CAGR) were 24% and 35%, respectively.。

2.Earnings outlook remains strong

Management guidance says the RF unit will maintain earnings growth in the second half of fiscal 2022, benefiting from orders for its traditional products.。Apple's recent launch of the iPhone SE with 5G capabilities is another positive for the company。As Apple brings new powerful chips and 5G capabilities to its most affordable iPhone line, this will provide a continuing boost to its RF division.。

3.Potential growth prospects

In addition to its existing business, the finalization of Inari's joint venture agreement with China Fortune Technology Capital Limited (CFTC) is another growth lever for Inari.。Inari's long-term expansion into China will benefit as China's chip foundries move forward with expansion plans and increased autonomy in the fierce high-tech war with the United States.。

4.Sound fundamentals and dividends

In addition to strong earnings growth, Inari has strong economic barriers as its balance sheet remains robust.。Given its net cash position, the company will also be insulated from the rising interest rate environment。Inari successfully raised private equity in 2021, raising 10.RM300 million, also driving the company's expansion plans。In terms of cash flow, Inari continues to generate positive operating cash flow。In the first half of fiscal 2022, the Company created 2.RM7.8 billion in operating cash flow, compared to 2.28.4 billion ringgit increase。Management has also adopted an average dividend yield of approximately 3.2% return to shareholders。This is very impressive given the strong earnings growth over the past 10 years。

5.Five key projects for five new customers

Inari's recent private equity funding has allowed the company to move away from reliance on a single client and diversify as part of its next phase of growth.。Five of the key projects include: 1) Module assembly and testing in the automotive industry 2) Transceiver modules in data centers 3) High-power LED packaging 4) Radio frequency double-sided molding (DSM) system packaging 5) Advanced embedding materials。The Group expects the contribution of these new projects to start at least 5% in fiscal 2022 and grow to 15% in fiscal 2023.。