Mitsui Kinzoku Rises to Record on Upgraded Fiscal Guidance and Bigger Dividend

Shares of Mitsui Kinzoku climbed to an all-time high after the company raised its fiscal 2025 operating profit forecast and lifted its annual revenue outlook, while also increasing its dividend. Management pointed to stronger-than-expected demand in its copper foil business tied to AI server applications, alongside favorable metal prices, a weaker yen and improved inventory trends.

Key Points

Mitsui Kinzoku raised fiscal 2025 operating income guidance to 117.0 billion yen from 78 billion yen and lifted revenue guidance to 750 billion yen from 715 billion yen - both now forecast as record highs.
The company pointed to stronger revenue expectations in its copper foil business driven by demand from AI server applications, and cited higher metal prices, a weaker yen and favorable inventory trends as supporting factors.
For the nine months to December 31, net sales rose 3.1% to 542.2 billion yen and operating income increased nearly 28% to 71.7 billion yen; net profit fell 5.9% due to one-off losses from the sale of the Mitsui Kinzoku ACT unit.

Shares of Japanese non-ferrous metal producer Mitsui Kinzoku surged to a record level on Monday following an upward revision to the company's fiscal 2025 outlook and an increase in its dividend payout. The stock jumped roughly 10% to a fresh high of 30,000 yen, making it one of the top performers on the Nikkei 225 index, which was essentially flat for the session.

The company - formerly known as Mitsui Mining and Smelting Co. (TYO:5706) - raised its forecast for operating income for the fiscal year ending March 31 to 117.0 billion yen, up from a previous projection of 78 billion yen. At the same time, annual revenue guidance was increased to 750 billion yen from 715 billion yen. Mitsui said both profit and revenue for the year are now expected to hit record highs.

Company commentary attributed the stronger outlook chiefly to higher revenue expectations from its copper foil business. Mitsui highlighted robust market demand for copper foil in applications such as artificial intelligence servers as a key factor behind the upgrade. In addition, the company cited broader support for metal-related earnings coming from elevated metal prices, the impact of a weaker yen on overseas sales margins, and a favorable inventory trend.

Mitsui has gained attention recently because of its exposure to critical metal components used in AI data centers. The firm also benefited from recent spikes in copper and precious metal prices and from currency movements that improved margins on foreign sales.

Looking at recent operating performance, for the nine months through December 31 the company reported net sales of 542.2 billion yen, a rise of 3.1%. Operating income for that period increased by nearly 28% to 71.7 billion yen. Net profit for the same nine-month span fell by 5.9%, a decline the company attributed to one-off losses related to the sale of its Mitsui Kinzoku ACT unit.

This set of results and the upgraded guidance helped push Mitsui Kinzoku's shares to their record level, reflecting stronger demand in targeted product lines as well as commodity and currency tailwinds cited by management.

Risks

Net profit contracted by 5.9% in the nine-month period due to one-off losses tied to the sale of the Mitsui Kinzoku ACT unit - a reminder that special items can materially affect reported earnings.
The revised outlook leans heavily on increased revenue from the copper foil business and on elevated metal prices and currency effects, indicating dependence on these specific demand and market conditions.
The company’s recent rise in market attention stems from exposure to components for AI data centers, creating concentration around a specific end market for which demand dynamics are a key driver.

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