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KH Neochem Co.,Ltd.
(4189)
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Rating:69Neutral
Price Target:
¥3,761.00
▲(51.84% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by stable overall financial health (strong balance sheet but mixed revenue/margin trajectory and uneven multi-year cash-flow consistency), supported by a clear upward technical trend. Valuation is reasonable with a mid-teens P/E and a ~3.25% dividend yield, while momentum indicators show the stock is somewhat extended (RSI ~72), limiting upside in the near term.
Positive Factors
Strong, improving balance sheet
Leverage has meaningfully declined to ~0.26, giving the company durable financial flexibility in the cyclical chemicals industry. Lower debt reduces refinancing risk, supports capex or M&A when cycles improve, and helps preserve investment-grade-like credibility with lenders over the next 2–6 months and beyond.
Negative Factors
Revenue volatility and recent decline
Top-line churn and a recent ~6% decline signal demand cyclicality and limited secular growth in core end markets. Persistent revenue stagnation reduces operating leverage, complicates long-term capacity planning, and makes earnings growth reliant on either price recovery or share gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong, improving balance sheet
Leverage has meaningfully declined to ~0.26, giving the company durable financial flexibility in the cyclical chemicals industry. Lower debt reduces refinancing risk, supports capex or M&A when cycles improve, and helps preserve investment-grade-like credibility with lenders over the next 2–6 months and beyond.
Read all positive factors
KH Neochem Co.,Ltd. (4189) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥122.61B
Dividend Yield3.25%
Average Volume (3M)110.95K
Price to Earnings (P/E)15.8
Beta (1Y)0.83
Revenue Growth-8.00%
EPS Growth-7.64%
CountryJP
Employees863
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)208.68
Shares Outstanding37,149,400
10 Day Avg. Volume104,350
30 Day Avg. Volume110,953
Financial Highlights & Ratios
PEG Ratio-3.35
Price to Book (P/B)1.27
Price to Sales (P/S)0.77
P/FCF Ratio9.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)266.1
Revenue Forecast (FY)¥121.10B
KH Neochem Co.,Ltd. Business Overview & Revenue Model
Company Description
Operating both domestically in Japan and across global markets, KH Neochem Co., Ltd. specializes in the research, production, and distribution of a wide array of petrochemical goods. Their extensive product portfolio encompasses various chemical c...
How the Company Makes Money
KH Neochem makes money primarily by manufacturing and selling chemical products to industrial customers, with revenue largely tied to shipment volumes and sales prices of its core product lines. Key revenue streams include: (1) Oxo alcohols: sales...
KH Neochem Co.,Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 111.87B | 115.10B | 119.76B | 115.22B | 114.88B | 117.11B |
| Gross Profit | 24.40B | 24.87B | 25.25B | 21.94B | 24.45B | 32.23B |
| EBITDA | 17.05B | 17.58B | 17.17B | 14.60B | 16.75B | 24.19B |
| Net Income | 7.38B | 7.80B | 8.36B | 6.83B | 8.07B | 13.69B |
Balance Sheet | ||||||
| Total Assets | 122.25B | 130.10B | 131.46B | 124.50B | 131.25B | 122.07B |
| Cash, Cash Equivalents and Short-Term Investments | 3.88B | 6.72B | 7.16B | 9.68B | 10.93B | 16.93B |
| Total Debt | 20.77B | 18.29B | 19.20B | 16.39B | 22.52B | 20.16B |
| Total Liabilities | 49.66B | 57.47B | 59.54B | 58.00B | 69.18B | 64.56B |
| Stockholders Equity | 69.66B | 69.68B | 69.09B | 63.74B | 59.35B | 54.92B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 9.13B | -1.45B | 8.11B | -5.27B | 13.36B |
| Operating Cash Flow | 0.00 | 13.78B | 6.98B | 13.20B | 5.13B | 17.40B |
| Investing Cash Flow | 0.00 | -4.63B | -8.90B | -4.94B | -10.08B | -4.39B |
| Financing Cash Flow | 0.00 | -9.57B | -645.00M | -9.50B | -1.08B | -5.17B |
KH Neochem Co.,Ltd. Technical Analysis
Positive
2477.00
Price Trends
2919.41
Positive
2814.15
Positive
2686.58
Positive
Market Momentum
145.98
Negative
73.55
Negative
91.91
Negative
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 2477 is below the 20-day moving average (MA) of 3132.80, below the 50-day MA of 2919.41, and below the 200-day MA of 2686.58, indicating a bullish trend. The MACD of 145.98 indicates Negative momentum. The RSI at 73.55 is Negative, neither overbought nor oversold. The STOCH value of 91.91 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥191.21B | 14.72 | 6.41% | 3.82% | -1.20% | 28.94% | |
75 Outperform | ¥39.10B | 7.95 | ― | 3.53% | -7.83% | 13.39% | |
74 Outperform | ¥102.78B | 38.18 | ― | 0.67% | 8.51% | -17.90% | |
69 Neutral | ¥122.61B | 15.84 | ― | 3.88% | -8.00% | -7.64% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥554.09B | 152.07 | 0.44% | 2.91% | -1.80% | -85.21% | |
57 Neutral | ¥862.51B | 20.48 | 5.11% | 3.52% | -4.09% | -26.93% |
* Basic Materials Sector Average
JP:4189
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KH Neochem Co.,Ltd. Corporate Events
KH Neochem Profit Surges Despite Lower Sales Amid Middle East Tensions
Aug 4, 2026
KH Neochem reported that net sales for the six months ended June 30, 2026, fell 2.2% year on year to ¥53.3 billion, missing its earlier forecast due to lower sales volumes caused by strict inventory controls amid concerns over raw material pr...
KH Neochem Lifts Dividend Policy Targets and Year-End Payout Forecast
Aug 4, 2026
KH Neochem Co., Ltd., a Tokyo Stock Exchange-listed chemical company, manages its business with an emphasis on balancing corporate growth, strategic investments, and shareholder returns. The firm aims to sustain stable dividends while improving ca...
KH Neochem Boosts Profits and Dividend Despite Lower Sales
Aug 4, 2026
KH Neochem Co., Ltd., a Tokyo Stock Exchange-listed chemical manufacturer, reported consolidated net sales of ¥53.3 billion for the six months ended June 30, 2026, down 9.3% year on year. Despite the revenue decline, operating income rose 24....
KH Neochem to Boost Board Benefit Trust with ¥55 Million Share Purchase
May 11, 2026
KH Neochem Co., Ltd. has approved an additional funding contribution to its Board Benefit Trust, a performance-linked share-based remuneration scheme for directors and corporate officers. The trust, established with Mizuho Trust Banking and using...
KH Neochem First-Quarter Profit Falls but Keeps 2026 Outlook and Higher Dividend Plan
May 11, 2026
KH Neochem reported a decline in first-quarter 2026 results, with net sales falling 11.2% year on year to ¥25.58 billion and operating income dropping 22.6% to ¥2.09 billion, while net income attributable to owners of the parent decrease...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.