KH Neochem Cuts FY2025 Earnings Forecast on Weak Demand but Signals Profit Recovery in 2026

KH Neochem Co.,Ltd. ( (JP:4189) ) just unveiled an update.

KH Neochem has cut its full-year consolidated forecast for the fiscal year ending December 31, 2025, trimming expected net sales from 127.4 billion yen to 115.0 billion yen and lowering projected operating income, ordinary income and net income by roughly 20–23% versus its previous outlook, bringing all major profit metrics below FY2024 levels. The downgrade reflects weak domestic demand and intensified competition from low-cost imports in basic chemicals, as well as a sharper-than-expected downturn in performance materials following a post-regulation demand recoil in the U.S. and a temporary slowdown in the air conditioner market linked to reduced impact from China’s appliance replacement subsidies, which has weighed on sales of refrigeration lubricant raw materials; nevertheless, the company is maintaining its dividend forecast for FY2025 and currently anticipates a recovery in FY2026 operating profit to around 13 billion yen, suggesting expectations of gradual operational improvement despite near-term headwinds.

The most recent analyst rating on (JP:4189) stock is a Hold with a Yen2772.00 price target. To see the full list of analyst forecasts on KH Neochem Co.,Ltd. stock, see the JP:4189 Stock Forecast page.

More about KH Neochem Co.,Ltd.

KH Neochem Co., Ltd. is a Japanese chemical manufacturer listed on the Tokyo Stock Exchange that operates in basic chemicals and performance materials. Its portfolio includes products such as refrigeration lubricant raw materials, with demand tied to sectors like air conditioners and broader industrial and consumer markets in Japan and overseas.

Average Trading Volume: 262,655

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen94.68B

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