On May 9, Japanese semiconductor manufacturing equipment company Screen Holdings released its financial report for the fiscal year 2023 (April 2023 - March 2024), achieving record-breaking revenue and profits, with expectations of further growth in the fiscal year 2024.
According to the financial report, Screen's consolidated revenue for the fiscal year 2023 increased by 9.6% to 504.9 billion yen, consolidated operating profit rose by 23.2% to 94.1 billion yen, and net profit surged by 22.8% to 70.5 billion yen year-on-year. All three metrics hit historical record highs.
Looking at the sales performance of various departments, in the fiscal year 2023, Screen's Semiconductor Production Equipment (SPE) business saw a revenue growth of 12.6% to 417.6 billion yen, and operating profit increased by 26.1% to 97 billion yen, both setting new historical records. The Graphic Arts (GA) business revenue grew by 4.7% to 47.7 billion yen, with operating profit up by 26.4% to 4.2 billion yen. However, the Flat Panel Display and Coating Equipment (FT) business revenue decreased by 11.2% to 23.2 billion yen, resulting in an operating loss of 400 million yen (compared to a loss of 1.8 billion yen in the previous fiscal year). The Printed Circuit Board (PCB) equipment business revenue shrank by 12.8% to 14.6 billion yen, with operating profit plummeting by 44.6% to 1.8 billion yen.
In terms of regional sales, in the fiscal year 2023, Screen's revenue in the Japanese market increased by 3% to 87.6 billion yen, accounting for 17% of total revenue (down from 18% in the previous year). Revenue from the Chinese Taiwan market plummeted by 56% to 57.9 billion yen, representing 12% of total revenue (down from 29% in 2022). Remarkably, revenue from the Chinese mainland market surged by 111% to 198.7 billion yen, making up 39% of total revenue, a significant increase from 21% in 2022 and becoming the top market for Screen. Revenue from the Korean market decreased by 19% to 27.3 billion yen, accounting for 5% of total revenue (down from 7% in 2022). North American market revenue soared by 71% to 82 billion yen, representing 16% of total revenue (up from 10% in 2022). European market revenue declined by 26% to 33.4 billion yen, accounting for 7% of total revenue (down from 10% in 2022).
Regarding the semiconductor market in 2024, Screen anticipates continued growth in demand from PCs, smartphones, and servers, especially a significant increase in server demand. With investments in mature processes in mainland China, a recovery in DRAM investments, and investments in cutting-edge processes in Chinese Taiwan, the market for front-end semiconductor manufacturing equipment (wafer fab equipment, WFE) is expected to grow by approximately 5% in 2024.
Screen projects that its consolidated revenue for the fiscal year 2024 (April 2024 - March 2025) will increase by 10.9% to 560 billion yen, consolidated profit will grow by 6.2% to 100 billion yen year-on-year, and consolidated net profit will rise by 2.0% to 72 billion yen. This would mark the fourth consecutive year of setting historical record highs for revenue and operating profit, with net profit also reaching new highs.
Specifically, Screen forecasts that the revenue from its Semiconductor Production Equipment (SPE) business in the fiscal year 2024 will increase by 10% to 460 billion yen, with operating profit growing by 9% to 106 billion yen. This segment is expected to achieve new historical highs in revenue and operating profit.
Despite the impressive financial performance in the fiscal year 2023 and the positive outlook for 2024, Screen's stock price unexpectedly dropped by over 10% on the 10th.
