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

• Market Cap: ¥93.68B
• Dividend Yield: 3.56%
• Average Volume (3M): 148.89K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.72
• Revenue Growth: 7.16%
• EPS Growth: 17.93%
• Country: JP
• Employees: 829
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): 47.98
• Shares Outstanding: 37,149,400
• 10 Day Avg. Volume: 135,450
• 30 Day Avg. Volume: 148,893
• PEG Ratio: -0.30
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.62
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥2,606.00 ▲(3.21%Upside)

KH Neochem Co.,Ltd.'s strong valuation and solid financial fundamentals are offset by technical challenges and negative cash flow trends. The attractive P/E ratio and dividend yield provide a cushion, but investors should monitor cash flow and technical indicators closely.

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

Company Description

KH Neochem Co., Ltd. is a Japanese chemical company specializing in the manufacture and sale of basic chemicals, performance materials, and electronic materials. The company operates in sectors such as automotive, electronics, and personal care, offering a diverse range of products including refrigeration lubricants, solvents, and raw materials for cosmetics. KH Neochem is committed to innovative research and development to enhance its product offerings and meet the evolving needs of its global customer base.

How the Company Makes Money

KH Neochem Co., Ltd. generates revenue primarily through the sale of its chemical products across various industries. The company's key revenue streams include basic chemicals, which are used in industrial applications; performance materials, which cater to automotive and electronics sectors; and electronic materials, which support the growing demand in the electronics industry. The company leverages its strong research and development capabilities to create high-value products that fulfill specific industry requirements. Strategic partnerships and a focus on expanding its global market presence also contribute significantly to its earnings.

KH Neochem Co.,Ltd. Financial Statement Overview

Summary

KH Neochem Co.,Ltd. demonstrates a robust financial position with strong revenue growth and profitability. However, declining margins and negative free cash flow in 2024 highlight emerging challenges. The balance sheet is solid with conservative leverage, but cash flow management needs attention.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
119.76B	115.22B	114.88B	117.11B	77.33B
	Gross Profit
25.25B	21.94B	24.45B	32.23B	16.14B
	EBIT
12.20B	9.95B	12.46B	19.68B	5.64B
	EBITDA
17.00B	14.46B	16.75B	24.19B	9.48B
	Net Income Common Stockholders
8.36B	6.83B	8.07B	13.69B	4.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.16B	9.68B	10.93B	16.93B	9.07B
	Total Assets
131.46B	124.50B	131.25B	122.07B	95.51B
	Total Debt
19.20B	16.39B	22.52B	20.16B	21.46B
	Net Debt
12.05B	6.70B	11.60B	3.22B	12.40B
	Total Liabilities
59.54B	58.01B	69.18B	64.57B	49.63B
	Stockholders Equity
69.09B	63.74B	59.35B	54.92B	43.38B
Cash Flow		Free Cash Flow
-1.45B	7.94B	-5.36B	13.00B	-4.20B
	Operating Cash Flow
6.98B	13.20B	5.13B	17.40B	6.93B
	Investing Cash Flow
-8.90B	-4.94B	-10.08B	-4.39B	-11.18B
	Financing Cash Flow
-645.00M	-9.50B	-1.08B	-5.17B	-4.53B

KH Neochem Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2525.00
• 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 2525 is above the 20-day moving average (MA) of 2475.80, above the 50-day MA of 2423.14, and above the 200-day MA of 2208.02, indicating a bullish trend. The MACD of 37.63 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 72.19 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
5013	82 Outperform	¥27.07B	6.26		6.84%	4.77%	43.74%
4220	80 Outperform	¥58.73B	8.09		4.13%	1.91%	20.44%
4368	79 Outperform	¥135.16B	11.45		2.01%	17.86%	39.28%
4097	77 Outperform	¥58.07B	11.95		1.93%	6.12%	6.26%
4041	77 Outperform	¥162.60B	10.68		5.49%	0.50%	-8.77%
4189	68 Neutral	¥93.68B	11.17		3.56%	7.16%	17.93%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

KH Neochem Co.,Ltd. Corporate Events

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.