JX Advanced Metals raises full-year profit estimate on robust chip material demand
SMH•JX Advanced Metals raised its net profit forecast for the year ending next March by 14% to 160 billion yen, citing semiconductor-material demand and a stronger copper-price outlook. First-half net profit rose 128% to 97.9 billion yen.
1. Higher annual forecast
JX Advanced Metals now expects net profit of 160 billion yen for the year ending next March, up from its August forecast of 141 billion yen. It raised its copper-price assumption to 619 cents per pound from 586 cents.
2. First-half results and outlook
Net profit for April-September rose 128% year over year to 97.9 billion yen. Profit from the basic materials business increased 136%, helped by average copper prices of 622 cents per pound, compared with 438 cents a year earlier. Lower copper-smelting treatment and refining charges cut first-half profit by 1 billion yen, while improved sulphuric acid margins added 3 billion yen. The company is assessing its second-half refined copper production outlook as it monitors treatment and refining charge negotiations.
3. Raw material sourcing
President Yoichi Hayashi said geopolitical risks and global supply-chain disruptions had increased the importance of securing raw materials. He said the company would use its resource development, refining and recycling technologies, along with investments and partnerships, to diversify raw material sources.
