Resonac Holdings ($4004) demonstrated robust growth for the nine months ending September 30, driven by heightened demand in the semiconductor sector, shared in a filing on the Tokyo Stock Exchange. The chemicals firm achieved an attributable profit of 50.77 billion yen, a significant rebound from a loss of 6.37 billion yen during the same period last year.
Net sales increased by 9%, reaching 1.028 trillion yen, supported by a resurgence in semiconductor-related segments and innovative materials. Jefferies noted that Resonac’s Q3 earnings also benefitted from a stabilization in the impacts of high-cost inventory, a burden that previously affected Q2 results. For the full year 2024, Resonac anticipates net sales of 1.382 trillion yen and an attributable profit of 32 billion yen.
Projected year-end dividends are set at 65 yen per share. The company linked the revised forecast to sustained semiconductor demand, despite facing challenging global market conditions and unpredictable exchange rates. Looking ahead, Resonac is expected to implement further restructuring in its Chemicals division, which may include a spin-off of its petrochemical segment and an overhaul of its graphite electrode operations, slated around the Q4 earnings report. Jefferies indicated that these strategic moves, paired with the growth in semiconductor materials, could lead to significant profit growth in FY25 and potential expansion of multiples..