Mitsui Kinzoku surges on AI server copper foil growth prospects, triggering short covering

Mitsui Kinzoku Company, Limited <5706> shares extended sharp gains to a second straight session. While the global copper foil and semiconductor materials leader has guided for lower operating profit for the year ending March 2027 due to scheduled large-scale maintenance and fading inventory tailwinds, its electrolytic copper foil for AI servers is projected to perform strongly.

The stock was recently lifted by a target price hike from a major domestic brokerage, continuing a string of positive developments in its materials business, such as its May decision to supply solid electrolytes for all-solid-state batteries.

In today's trading, a wave of short-covering in AI semiconductor-related stocks spilled over into Mitsui Kinzoku shares, driving a notable rally.

Separately, on June 11, the company issued a statement addressing rumors circulating primarily in Asia regarding its copper foil business, including claims of intensifying competition from South Korean rivals and potential displacement by glass substrates. Mitsui Kinzoku dismissed these reports as factually inaccurate, clarifying that there has been no material change to its business environment or medium- to long-term growth outlook.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.