Mitsui High-Tec, a renowned company specializing in products used in the semiconductor industry, experienced a significant decline in its shares on Wednesday morning. The company’s decision to downgrade its fiscal-year earnings forecasts was primarily driven by weaker demand for its semiconductor-related products.
Currently, Mitsui High-Tec shares are trading at 7,720 yen, marking a 16% decrease and placing them at the lower end of the day’s trading range.
In an announcement made on Tuesday after the market closed, Mitsui High-Tec revealed that it anticipates a 33% drop in net profit, amounting to Y11.70 billion ($79.6 million) for the fiscal year ending January 2024. This projection is revised-down from the previous forecast of Y16.60 billion. Furthermore, the company now expects a 10% increase in revenue, amounting to Y192.00 billion, compared to the previously anticipated Y205.00 billion.
Mitsui High-Tec attributed this downgrade to weaker-than-expected demand for leadframes, which are thin metal layers utilized in semiconductors. Despite the strong demand for electric-vehicle motor parts, the company acknowledged that the demand for leadframes fell short of earlier projections.
During the first half of the fiscal year, Mitsui High-Tec witnessed a 30% decline in net profit, amounting to Y7.71 billion, while revenue experienced a moderate growth of 9.5% and reached Y93.61 billion.