KH Neochem Co.,Ltd. (4189) AI Stock Analysis

• Market Cap: ¥104.99B
• Dividend Yield: 3.45%
• Average Volume (3M): 207.19K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.63
• Revenue Growth: 8.18%
• EPS Growth: 28.35%
• Country: JP
• Employees: 829
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals
• EPS (TTM): 60.11
• Shares Outstanding: 37,149,400
• 10 Day Avg. Volume: 203,420
• 30 Day Avg. Volume: 207,186
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,266.00
• Price Target Upside: 15.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥3,266.00 ▲(15.41% Upside)

The stock of KH Neochem Co.,Ltd. scores well due to strong technical indicators and solid financial performance, despite challenges in cash flow management. Its valuation is attractive, offering a reasonable P/E ratio and a good dividend yield. The lack of specific earnings call data or significant corporate events means the score relies heavily on financials and market trends.

KH Neochem Co.,Ltd. Business Overview & Revenue Model

Company Description

KH Neochem Co., Ltd. is a Japan-based chemical company that operates primarily in the manufacturing and sale of specialty chemicals. The company's core products include basic chemicals, performance materials, and electronic materials, which serve various industries such as automotive, electronics, and consumer goods. KH Neochem is known for its innovative chemical solutions and commitment to sustainability, providing materials that are essential for everyday life and industrial applications.

How the Company Makes Money

KH Neochem Co., Ltd. generates revenue through the production and sale of specialty chemicals. Its key revenue streams include the sale of basic chemicals used in industrial applications, performance materials that enhance product performance in sectors like automotive and consumer goods, and electronic materials essential for the electronics industry. The company benefits from strong relationships with industrial clients and leverages its research and development capabilities to innovate and expand its product offerings. Additionally, KH Neochem's focus on sustainable and high-performance chemical solutions allows it to meet the growing demand for environmentally friendly products, contributing to its financial performance.

KH Neochem Co.,Ltd. Financial Statement Overview

Summary

KH Neochem Co.,Ltd. shows strong revenue growth and profitability with a solid balance sheet characterized by conservative leverage. However, declining margins and negative free cash flow in 2024 indicate emerging challenges and call for improved cash management.

Income Statement

KH Neochem Co.,Ltd. demonstrated solid revenue growth with a 3.95% increase in 2024 over 2023. The company maintained a strong gross profit margin of 21.09% and a net profit margin of 6.98% in 2024, indicating consistent profitability. However, there is a slight decline in margins from previous years, pointing to potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is 0.28, reflecting a conservative leverage position. Return on Equity (ROE) stands at 12.10%, showcasing effective use of equity to generate profits. The equity ratio of 52.55% highlights a strong equity base, but the decreasing trend in equity ratio from previous years may signal increasing liabilities.

Cash Flow

Free cash flow turned negative in 2024, indicating cash flow challenges. The operating cash flow to net income ratio is 0.84, suggesting operational cash generation is trailing net income. The free cash flow to net income ratio is negative, which calls for attention to cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.59B	119.76B	115.22B	114.88B	117.11B	77.33B
Gross Profit	25.60B	25.25B	21.94B	24.45B	32.23B	16.14B
EBITDA	17.33B	17.00B	14.46B	16.01B	24.19B	9.48B
Net Income	8.37B	8.36B	6.83B	8.07B	13.69B	4.05B
Balance Sheet
Total Assets	125.22B	131.46B	124.50B	131.25B	122.07B	95.51B
Cash, Cash Equivalents and Short-Term Investments	3.98B	7.16B	9.68B	10.93B	16.93B	9.07B
Total Debt	23.63B	19.20B	16.39B	22.52B	20.16B	21.46B
Total Liabilities	54.67B	59.54B	58.01B	69.18B	64.57B	49.63B
Stockholders Equity	67.72B	69.09B	63.74B	59.35B	54.92B	43.38B
Cash Flow
Free Cash Flow	0.00	-1.45B	7.94B	-5.36B	13.00B	-4.20B
Operating Cash Flow	0.00	6.98B	13.20B	5.13B	17.40B	6.93B
Investing Cash Flow	0.00	-8.90B	-4.94B	-10.08B	-4.39B	-11.18B
Financing Cash Flow	0.00	-645.00M	-9.50B	-1.08B	-5.17B	-4.53B

KH Neochem Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4189, the sentiment is Positive. The current price of 2830 is above the 20-day moving average (MA) of 2765.45, above the 50-day MA of 2722.91, and above the 200-day MA of 2368.05, indicating a bullish trend. The MACD of 19.59 indicates Negative momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 73.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4189.

KH Neochem Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4220	82 Outperform	¥61.06B	9.03		3.05%	2.72%	5.77%
4041	78 Outperform	¥194.88B	13.84		2.29%	3.26%	-13.75%
4189	77 Outperform	¥104.99B	11.57		3.45%	8.18%	28.35%
5013	76 Outperform	¥31.89B	6.41		4.18%	3.47%	33.32%
4097	76 Outperform	¥60.23B	13.16		1.83%	5.20%	-1.83%
4368	72 Outperform	¥166.35B	14.05		1.50%	12.70%	34.96%
Sector *	62 Neutral	$10.36B	6.35	0.80%	2.84%	3.10%	-36.03%

KH Neochem Co.,Ltd. Corporate Events

KH Neochem Announces Share Buyback Progress

KH Neochem Co., Ltd. announced the acquisition of 186,200 of its own shares at a cost of 500,697,300 yen through market purchases on the Tokyo Stock Exchange. This acquisition is part of a larger plan authorized by the Board of Directors to buy back up to 2,500,000 shares, aiming to enhance shareholder value and optimize capital structure.

KH Neochem Reports Strong Financial Growth in First Half of 2025

KH Neochem Co., Ltd. reported a significant improvement in its financial performance for the first half of 2025, with a 5.1% increase in net sales and substantial rises in operating and ordinary income. The company’s strategic focus has resulted in a notable increase in basic earnings per share, reflecting its strong market positioning and operational efficiency. The announcement indicates a positive outlook for stakeholders, with the company maintaining its dividend forecast and showing resilience in its financial health.

KH Neochem Announces Progress in Share Buyback Program

KH Neochem Co., Ltd. announced the acquisition of 426,500 of its own shares, amounting to approximately 1.02 billion yen, through market purchases on the Tokyo Stock Exchange during May 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 2.5 million shares, with a total budget of 5 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

KH Neochem Enhances Board Benefit Trust with Additional Funds

KH Neochem Co., Ltd. has announced an additional contribution to its Board Benefit Trust, a move aimed at securing shares for future benefits under its performance-linked share-based remuneration plan. This strategic decision reflects the company’s commitment to aligning the interests of its directors and corporate officers with long-term shareholder value, potentially enhancing its market position and stakeholder confidence.

KH Neochem Reports Q1 2025 Financial Results with Positive Growth Forecast

KH Neochem Co., Ltd. reported a 6.8% increase in net sales for the first quarter of 2025, with operating income rising by 8.5% compared to the previous year. Despite a decrease in comprehensive income by 30%, the company forecasts continued growth in sales and income for the full year, indicating a positive outlook for stakeholders.