MORIMATSU INTL's stock plummeted 5.24% during intraday trading on Tuesday, marking a significant pullback from its recent gains.
The decline reflects notable profit-taking pressure, as the stock had surged over 19% in the previous trading session. While the company recently expanded into semiconductor equipment through a subsidiary's product procurement contract, the deal size of RMB 12 million is relatively limited against the company's overall revenue base.
Fundamentally, the company's full-year results showed shareholder-attributable profit declining 18.7% year-over-year, with net profit margin falling 2.1 percentage points. The modest contract size combined with weakening profitability metrics appears insufficient to sustain the prior session's sharp rally, triggering profit-taking among short-term traders.