JX Metals lifts guidance, joins Nikkei, expands into rare earths and lithium
Profit forecast raised on AI chip demand and copper prices JX Metals lifted its full-year net profit forecast to 141 billion yen, up 34.7%, after first-quarter operating profit jumped 176% to 81.4 billion yen. Strong sales of semiconductor materials used in AI servers, a weaker yen and higher copper prices are driving profits, which supports the shares.
This is the core earnings driver behind the stock's move this period.
Upgraded guidance still fell short of analyst estimates Even after the upgrade, the company's forecast was below what analysts expected, and the stock fell sharply on the first trading day after results. This is a real counterweight: the business is strong, but expectations were even higher, so the shares have swung without clear direction.
It is the main negative force and explains why the stock did not simply rise on good news.
Joining the Nikkei 225 index brings forced buying JX Metals will be added to the Nikkei Stock Average on October 1. Funds that track the index must buy the stock to match it, creating steady demand around the change. This is a one-time technical boost, not a change in the underlying business.
Index inclusion is a new, concrete event that directly affects demand for the shares.
New rare earth and lithium deals widen the growth story JX Metals signed a rare earth cooperation and investment agreement with Tronox, sharing about $32 million in studies for plants in Australia and the US, and a binding lithium exploration deal in Australia. These moves expand into critical minerals, adding a new long-term growth angle beyond copper and chips.
These are new strategic investments that broaden the company's future revenue sources.