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Japan-Update

Resource curse keeps investors wary of trader Mitsui's record year

Even diversified peer Itochu suffers from Japanese sector's conglomerate discount

Resource-related operations are forecast to contribute more than 70% of Mitsui's net profit this fiscal year.

TOKYO -- Mitsui & Co. looks to have a banner year, but the Japanese trading company is not feeling the love from investors owing to its heavy reliance on extracting mineral and energy wealth from the ground.

"We had very smooth results," Chief Financial Officer Keigo Matsubara said at a news conference Thursday as the company reported that net profit skyrocketed 95% year on year to a record 238.3 billion yen ($2.08 billion) for the April-September half. The Tokyo-based group raised its full-year net profit guidance by 80 billion yen to 400 billion yen, which would mark an all-time high and a roughly 30% jump on the year.

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