On May 9th, Japanese semiconductor manufacturing equipment company Screen Holdings announced its financial results for the fiscal year 2023 (April 2023 to March 2024), with both revenue and profit reaching new highs, and expectations that the performance for the fiscal year 2024 will continue to set new records.
According to the financial report, Screen’s consolidated revenue for the fiscal year 2023 increased by 9.6% year-on-year to 504.9 billion yen, operating profit grew by 23.2% to 94.1 billion yen, and net profit increased by 22.8% to 70.5 billion yen, with all three figures setting historical records.
Breaking down the sales by business segment, Screen’s semiconductor manufacturing equipment business (SPE) saw a 12.6% year-on-year increase in revenue to 417.6 billion yen and a 26.1% increase in operating profit to 97 billion yen, both setting new historical highs; the graphic-related equipment business (GA) saw a 4.7% increase in revenue to 47.7 billion yen and a 26.4% increase in operating profit to 4.2 billion yen; the panel manufacturing equipment and film equipment business (FT) saw a 11.2% decrease in revenue to 23.2 billion yen, with an operating loss of 400 million yen (compared to a loss of 1.8 billion yen in the previous fiscal year); the PCB-related equipment business (PE) saw a 12.8% decrease in revenue to 14.6 billion yen and a 44.6% drop in operating profit to 1.8 billion yen.
Looking at the sales by region, Screen’s revenue in the Japanese market for the fiscal year 2023 increased by 3% year-on-year to 87.6 billion yen, accounting for 17% of the total revenue (18% in the previous fiscal year); revenue in the Taiwan market plummeted by 56% to 57.9 billion yen, accounting for 12% of the total (29% in the previous fiscal year); revenue in the Chinese mainland market surged by 111% to 198.7 billion yen, with its share of revenue jumping from 21% in the previous fiscal year to 39%, leading all markets; revenue in the South Korean market fell by 19% to 27.3 billion yen, accounting for 5% of the total (7% in the previous fiscal year); revenue in the North American market soared by 71% to 82 billion yen, accounting for 16% of the total (10% in the previous fiscal year); revenue in the European market fell by 26% to 33.4 billion yen, accounting for 7% of the total (10% in the previous fiscal year).
Regarding the semiconductor market for 2024, Screen stated that demand from PCs, smartphones, and servers is expected to continue growing, especially with server demand expected to surge in terms of monetary value. Driven by investments in mature processes in mainland China, a recovery in DRAM investments, and investments in the most advanced processes in Taiwan, it is anticipated that the market for front-end semiconductor manufacturing equipment (wafer fabrication equipment, WFE) will grow by about 5% year-on-year in 2024.
Screen forecasts that its consolidated revenue for the fiscal year 2024 (April 2024 to March 2025) will increase by 10.9% year-on-year to 560 billion yen, with operating profit growing by 6.2% to 100 billion yen, and net profit increasing by 2.0% to 72 billion yen, marking the fourth consecutive year of setting new historical highs for both revenue and operating profit, with net profit also expected to reach a new high.
Among them, Screen expects the semiconductor manufacturing equipment business (SPE) to see a 10% year-on-year increase in revenue to 460 billion yen for the fiscal year 2024, with operating profit growing by 9% to 106 billion yen, as this business segment continues to set new historical highs.
Despite the impressive financial results for the fiscal year 2023 and the outlook for the fiscal year 2024, Screen’s stock price unexpectedly plummeted by more than 10% on the 10th.