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Based on the latest market data and technical reports from April 2026, Inari Amertron Berhad (INARI) is currently showing signs of a bullish breakout.
Current Trend & Momentum
- Bullish Breakout: The stock recently staged a decisive breakout above the RM1.75 – RM1.80 resistance zone. This move was supported by a noticeable increase in trading volume, indicating strong buying interest.
- Momentum Indicators: Indicators such as the RSI and MACD are trending upward, suggesting that the "path of least resistance" is currently toward the upside.
- V-Shaped Recovery Potential: After a challenging period in late 2025/early 2026, the stock is forming a "higher high" pattern, which technically signals the start of a new uptrend.
Market Sentiment & Catalysts
- Deal Termination: The recent termination of the Lumileds acquisition was viewed by the market as a "near-term positive," removing uncertainty and allowing the company to focus on its core operations and cash preservation.
- Sector Outlook: While FY2026 is expected to be a transition year, the technical strength reflects investor anticipation of a strong FY2027 recovery driven by the next smartphone cycle and AI-driven demand for datacom photonics.
Following a "kitchen-sinking" FY25 (restructuring and production recovery), JAG is primed for a V-shaped earnings rebound driven by three core catalysts:
- Massive Inventory Gains: Book value of inventory is RM115m, but current market value is ≥RM250m—essentially matching the company’s entire market cap. Selling this low-cost stock at spot prices will supercharge near-term profits.
- Regulatory Protection: New DoE export bans on metal waste force raw materials to remain in Malaysia. As a top-tier licensed facility, JAG gains lower procurement costs and better supply security.
- Downstream Margin Lift: A new RM120m plant will shift production from raw waste to high-value finished products (gold/silver bars). This pivot bypasses certain taxes and adds a projected 5% margin expansion.
Financial Snapshot
- Earnings: Projected shift from loss (FY25) to RM16.4m profit (FY26), reaching RM21.0m by FY28.
- Balance Sheet: Solid financial health with a low 0.33x net gearing.
- Mix: High leverage to Copper (69%) with growing exposure to high-margin Precious Metals.
The Bottom Line: JAG is a recovery play where undervalued inventory provides the safety net, and the new downstream plant provides the growth engine.
