Reported Earnings • May 12
First quarter 2026 earnings released: EPS: JP¥38.51 (vs JP¥47.96 in 1Q 2025) First quarter 2026 results: EPS: JP¥38.51 (down from JP¥47.96 in 1Q 2025). Revenue: JP¥25.6b (down 11% from 1Q 2025). Net income: JP¥1.35b (down 24% from 1Q 2025). Profit margin: 5.3% (down from 6.1% in 1Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 5% per year. Declared Dividend • Apr 11
Final dividend of JP¥55.00 announced Shareholders will receive a dividend of JP¥55.00. Ex-date: 29th June 2026 Payment date: 7th September 2026 Dividend yield will be 3.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (48% earnings payout ratio) and cash flows (43% cash payout ratio). The dividend has increased by an average of 10% per year over the past 9 years and payments have been stable during that time. EPS is expected to grow by 46% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Board Change • Apr 01
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Director Tarou Hasuo was the last director to join the board, commencing their role in 2026. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 12
KH Neochem Co., Ltd. to Report Q1, 2026 Results on May 11, 2026 KH Neochem Co., Ltd. announced that they will report Q1, 2026 results on May 11, 2026 Reported Earnings • Feb 07
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: JP¥218 (down from JP¥226 in FY 2024). Revenue: JP¥115.1b (down 3.9% from FY 2024). Net income: JP¥7.80b (down 6.7% from FY 2024). Profit margin: 6.8% (down from 7.0% in FY 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 21%. Revenue is forecast to grow 8.7% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Feb 06
KH Neochem Co., Ltd., Annual General Meeting, Mar 26, 2026 KH Neochem Co., Ltd., Annual General Meeting, Mar 26, 2026. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥52.50 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 26 March 2026. Payout ratio is a comfortable 39% but the company is not cash flow positive. Trailing yield: 4.2%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.5%). Announcement • Dec 04
KH Neochem Co., Ltd. to Report Fiscal Year 2025 Results on Feb 06, 2026 KH Neochem Co., Ltd. announced that they will report fiscal year 2025 results at 3:00 PM, Tokyo Standard Time on Feb 06, 2026 Reported Earnings • Nov 07
Third quarter 2025 earnings released: EPS: JP¥48.04 (vs JP¥43.55 in 3Q 2024) Third quarter 2025 results: EPS: JP¥48.04 (up from JP¥43.55 in 3Q 2024). Revenue: JP¥27.8b (down 9.8% from 3Q 2024). Net income: JP¥1.69b (up 5.0% from 3Q 2024). Profit margin: 6.1% (up from 5.2% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Declared Dividend • Sep 06
First half dividend of JP¥52.50 announced Shareholders will receive a dividend of JP¥52.50. Ex-date: 29th December 2025 Payment date: 26th March 2026 Dividend yield will be 3.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (40% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 9.5% per year over the past 9 years and payments have been stable during that time. EPS is expected to grow by 48% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Sep 02
KH Neochem Co., Ltd. to Report Q3, 2025 Results on Nov 05, 2025 KH Neochem Co., Ltd. announced that they will report Q3, 2025 results on Nov 05, 2025 Reported Earnings • Aug 05
Second quarter 2025 earnings released: EPS: JP¥60.29 (vs JP¥41.75 in 2Q 2024) Second quarter 2025 results: EPS: JP¥60.29 (up from JP¥41.75 in 2Q 2024). Revenue: JP¥29.9b (up 3.4% from 2Q 2024). Net income: JP¥2.17b (up 40% from 2Q 2024). Profit margin: 7.2% (up from 5.3% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Jun 09
KH Neochem Co., Ltd. to Report Q2, 2025 Results on Aug 04, 2025 KH Neochem Co., Ltd. announced that they will report Q2, 2025 results on Aug 04, 2025 Reported Earnings • May 09
First quarter 2025 earnings released: EPS: JP¥47.96 (vs JP¥47.62 in 1Q 2024) First quarter 2025 results: EPS: JP¥47.96 (up from JP¥47.62 in 1Q 2024). Revenue: JP¥28.8b (up 6.8% from 1Q 2024). Net income: JP¥1.77b (flat on 1Q 2024). Profit margin: 6.1% (down from 6.5% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Declared Dividend • Apr 11
Final dividend of JP¥52.50 announced Shareholders will receive a dividend of JP¥52.50. Ex-date: 27th June 2025 Payment date: 8th September 2025 Dividend yield will be 4.2%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (40% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 11% per year over the past 8 years and payments have been stable during that time. EPS is expected to grow by 52% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,117, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Chemicals industry in Japan. Total loss to shareholders of 5.3% over the past three years. Reported Earnings • Mar 28
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥226 (up from JP¥184 in FY 2023). Revenue: JP¥119.8b (up 3.9% from FY 2023). Net income: JP¥8.36b (up 23% from FY 2023). Profit margin: 7.0% (up from 5.9% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 4.1%. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Mar 05
KH Neochem Co., Ltd. to Report Q1, 2025 Results on May 08, 2025 KH Neochem Co., Ltd. announced that they will report Q1, 2025 results on May 08, 2025 Price Target Changed • Feb 13
Price target increased by 8.7% to JP¥2,900 Up from JP¥2,667, the current price target is an average from 3 analysts. New target price is 16% above last closing price of JP¥2,507. Stock is up 12% over the past year. The company is forecast to post earnings per share of JP¥268 for next year compared to JP¥226 last year. New Risk • Feb 12
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 3.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 08
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: JP¥226 (up from JP¥184 in FY 2023). Revenue: JP¥119.8b (up 3.9% from FY 2023). Net income: JP¥8.36b (up 23% from FY 2023). Profit margin: 7.0% (up from 5.9% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 4.1%. Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 20
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 27 March 2025. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 4.5%. Within top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (2.6%). Announcement • Dec 04
KH Neochem Co., Ltd. to Report Fiscal Year 2024 Results on Feb 07, 2025 KH Neochem Co., Ltd. announced that they will report fiscal year 2024 results on Feb 07, 2025 Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: JP¥43.55 (vs JP¥42.84 in 3Q 2023) Third quarter 2024 results: EPS: JP¥43.55 (up from JP¥42.84 in 3Q 2023). Revenue: JP¥30.9b (up 12% from 3Q 2023). Net income: JP¥1.61b (up 1.6% from 3Q 2023). Profit margin: 5.2% (down from 5.7% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Announcement • Sep 10
KH Neochem Co., Ltd. to Report Q3, 2024 Results on Nov 05, 2024 KH Neochem Co., Ltd. announced that they will report Q3, 2024 results on Nov 05, 2024 Reported Earnings • Aug 07
Second quarter 2024 earnings released: EPS: JP¥41.75 (vs JP¥42.99 in 2Q 2023) Second quarter 2024 results: EPS: JP¥41.75 (down from JP¥42.99 in 2Q 2023). Revenue: JP¥28.9b (flat on 2Q 2023). Net income: JP¥1.55b (down 3.0% from 2Q 2023). Profit margin: 5.3% (down from 5.5% in 2Q 2023). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to JP¥1,777, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Chemicals industry in Japan. Total loss to shareholders of 29% over the past three years. Declared Dividend • Aug 04
Dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 27th December 2024 Payment date: 27th March 2025 Dividend yield will be 4.6%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (47% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 8.6% per year over the past 8 years and payments have been stable during that time. EPS is expected to grow by 49% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 09
First quarter 2024 earnings released: EPS: JP¥47.62 (vs JP¥40.09 in 1Q 2023) First quarter 2024 results: EPS: JP¥47.62 (up from JP¥40.09 in 1Q 2023). Revenue: JP¥27.0b (down 6.1% from 1Q 2023). Net income: JP¥1.76b (up 19% from 1Q 2023). Profit margin: 6.5% (up from 5.2% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 9% per year. Declared Dividend • Apr 11
Final dividend of JP¥45.00 announced Shareholders will receive a dividend of JP¥45.00. Ex-date: 27th June 2024 Payment date: 9th September 2024 Dividend yield will be 3.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (45% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has increased by an average of 9.5% per year over the past 7 years and payments have been stable during that time. EPS is expected to grow by 51% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 30
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: JP¥184 (down from JP¥218 in FY 2022). Revenue: JP¥115.2b (flat on FY 2022). Net income: JP¥6.83b (down 15% from FY 2022). Profit margin: 5.9% (down from 7.0% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 6% per year. Announcement • Mar 07
KH Neochem Co., Ltd. to Report Q1, 2024 Results on May 08, 2024 KH Neochem Co., Ltd. announced that they will report Q1, 2024 results on May 08, 2024 Reported Earnings • Feb 08
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: JP¥184 (down from JP¥218 in FY 2022). Revenue: JP¥115.2b (flat on FY 2022). Net income: JP¥6.83b (down 15% from FY 2022). Profit margin: 5.9% (down from 7.0% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 3% per year and the company’s share price has also fallen by 3% per year. Announcement • Jan 25
KH Neochem Co., Ltd., Annual General Meeting, Mar 26, 2024 KH Neochem Co., Ltd., Annual General Meeting, Mar 26, 2024. Agenda: to consider amendment to the Articles of Incorporation. Upcoming Dividend • Dec 21
Upcoming dividend of JP¥45.00 per share at 3.9% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 27 March 2024. Payout ratio is a comfortable 45% but the company is not cash flow positive. Trailing yield: 3.9%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (2.4%). Announcement • Dec 05
KH Neochem Co., Ltd. to Report Fiscal Year 2023 Results on Feb 06, 2024 KH Neochem Co., Ltd. announced that they will report fiscal year 2023 results on Feb 06, 2024 Major Estimate Revision • Nov 28
Consensus EPS estimates fall by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥119.4b to JP¥114.8b. EPS estimate also fell from JP¥225 per share to JP¥184 per share. Net income forecast to grow 19% next year vs 13% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥3,125 to JP¥3,050. Share price was steady at JP¥2,292 over the past week. Price Target Changed • Nov 10
Price target decreased by 9.1% to JP¥3,125 Down from JP¥3,438, the current price target is an average from 4 analysts. New target price is 35% above last closing price of JP¥2,317. Stock is down 15% over the past year. The company is forecast to post earnings per share of JP¥230 for next year compared to JP¥218 last year. Reported Earnings • Nov 04
Third quarter 2023 earnings released: EPS: JP¥42.84 (vs JP¥32.41 in 3Q 2022) Third quarter 2023 results: EPS: JP¥42.84 (up from JP¥32.41 in 3Q 2022). Revenue: JP¥27.7b (down 8.2% from 3Q 2022). Net income: JP¥1.59b (up 32% from 3Q 2022). Profit margin: 5.7% (up from 4.0% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Oct 29
KH Neochem Co., Ltd. Revises Earnings Guidance for the Fiscal Year Ending December 31, 2023 KH Neochem Co., Ltd. revised earnings guidance for the fiscal year ending December 31, 2023. For the year, the company now expects net sales to be ¥114,800 million, operating income to be ¥10,000 million, net income attributable to owners of parent to be ¥6,900 million or Earnings per share to be ¥186.22 against net sales to be ¥118,400 million, operating income to be ¥13,000 million, net income attributable to owners of parent to be ¥8,900 million or Earnings per share to be ¥240.20. Announcement • Sep 07
KH Neochem Co., Ltd. to Report Q3, 2023 Results on Nov 02, 2023 KH Neochem Co., Ltd. announced that they will report Q3, 2023 results on Nov 02, 2023 Reported Earnings • Aug 08
Second quarter 2023 earnings released: EPS: JP¥42.99 (vs JP¥27.88 in 2Q 2022) Second quarter 2023 results: EPS: JP¥42.99 (up from JP¥27.88 in 2Q 2022). Revenue: JP¥29.1b (up 27% from 2Q 2022). Net income: JP¥1.59b (up 54% from 2Q 2022). Profit margin: 5.5% (up from 4.5% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥45.00 per share at 3.7% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 04 September 2023. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (2.5%). Announcement • Jun 03
KH Neochem Co., Ltd. to Report Q2, 2023 Results on Aug 04, 2023 KH Neochem Co., Ltd. announced that they will report Q2, 2023 results on Aug 04, 2023 Reported Earnings • May 10
First quarter 2023 earnings released: EPS: JP¥40.09 (vs JP¥91.00 in 1Q 2022) First quarter 2023 results: EPS: JP¥40.09 (down from JP¥91.00 in 1Q 2022). Revenue: JP¥28.7b (down 3.8% from 1Q 2022). Net income: JP¥1.49b (down 56% from 1Q 2022). Profit margin: 5.2% (down from 11% in 1Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 29
Full year 2022 earnings: Revenues miss analyst expectations Full year 2022 results: Revenue: JP¥114.9b (down 1.9% from FY 2021). Net income: JP¥8.07b (down 41% from FY 2021). Profit margin: 7.0% (down from 12% in FY 2021). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 1.2%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 3.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 12
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: JP¥218 (down from JP¥369 in FY 2021). Revenue: JP¥114.9b (down 1.9% from FY 2021). Net income: JP¥8.07b (down 41% from FY 2021). Profit margin: 7.0% (down from 12% in FY 2021). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 2.9%. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 09
KH Neochem Co., Ltd., Annual General Meeting, Mar 24, 2023 KH Neochem Co., Ltd., Annual General Meeting, Mar 24, 2023. Upcoming Dividend • Dec 22
Upcoming dividend of JP¥42.50 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 27 March 2023. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.8%). In line with average of industry peers (3.0%). Announcement • Dec 07
KH Neochem Co., Ltd. to Report Fiscal Year 2022 Results on Feb 07, 2023 KH Neochem Co., Ltd. announced that they will report fiscal year 2022 results on Feb 07, 2023 Major Estimate Revision • Nov 22
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from JP¥249 to JP¥224. Revenue forecast unchanged from JP¥116.1b at last update. Net income forecast to grow 16% next year vs 5.1% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥4,000 to JP¥3,867. Share price was steady at JP¥2,827 over the past week. Board Change • Nov 16
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 4 were independent directors. The company's board is composed of: 7 new directors. 4 experienced directors. No highly experienced directors. 3 independent directors (5 non-independent directors). Independent Outside Director Sayoko Miyairi is the most experienced director on the board, commencing their role in 2019. Independent Outside Director Jun Tsuchiya was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 09
Third quarter 2022 earnings released: EPS: JP¥32.40 (vs JP¥120 in 3Q 2021) Third quarter 2022 results: EPS: JP¥32.40 (down from JP¥120 in 3Q 2021). Revenue: JP¥30.1b (down 4.1% from 3Q 2021). Net income: JP¥1.20b (down 73% from 3Q 2021). Profit margin: 4.0% (down from 14% in 3Q 2021). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Nov 07
KH Neochem Co., Ltd. Provides Dividend Guidance for the Fiscal Year Ending December 31, 2022 KH Neochem Co., Ltd. provided dividend guidance for the fiscal year ending December 31, 2022. For the year, the company expects to pay dividend of JPY 42.50 per share. Announcement • Oct 28
KH Neochem Co., Ltd. Revises Consolidated Earnings Guidance for the Year Ending December 31, 2022 KH Neochem Co., Ltd. revised consolidated earnings guidance for the year ending December 31, 2022. For the year, the company expects net sales of ¥116,000 million compared to previous guidance of ¥123,300 million, operating income of ¥13,000 million compared to previous guidance of ¥16,100 million, net income attributable to owners of parent of ¥8,300 million and basic earnings per share of ¥223.85 compared to previous guidance of ¥11,500 million and basic earnings per share of ¥310.15. Announcement • Aug 31
KH Neochem Co., Ltd. to Report Q3, 2022 Results on Nov 07, 2022 KH Neochem Co., Ltd. announced that they will report Q3, 2022 results on Nov 07, 2022 Price Target Changed • Aug 26
Price target decreased to JP¥4,133 Down from JP¥4,450, the current price target is an average from 3 analysts. New target price is 65% above last closing price of JP¥2,507. Stock is down 17% over the past year. The company is forecast to post earnings per share of JP¥310 for next year compared to JP¥369 last year. Reported Earnings • Aug 05
Second quarter 2022 earnings released: EPS: JP¥27.88 (vs JP¥90.03 in 2Q 2021) Second quarter 2022 results: EPS: JP¥27.88 (down from JP¥90.03 in 2Q 2021). Revenue: JP¥22.9b (down 20% from 2Q 2021). Net income: JP¥1.03b (down 69% from 2Q 2021). Profit margin: 4.5% (down from 12% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 6.7%, compared to a 9.8% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥42.50 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 05 September 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Japanese dividend payers (3.8%). Higher than average of industry peers (3.0%). Announcement • Jun 02
KH Neochem Co., Ltd. to Report Q2, 2022 Results on Aug 04, 2022 KH Neochem Co., Ltd. announced that they will report Q2, 2022 results on Aug 04, 2022 Reported Earnings • May 11
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: JP¥91.00 (up from JP¥61.99 in 1Q 2021). Revenue: JP¥29.9b (up 25% from 1Q 2021). Net income: JP¥3.38b (up 47% from 1Q 2021). Profit margin: 11% (up from 9.6% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.9%. Over the next year, revenue is forecast to grow 1.1%, compared to a 7.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Outside Director Jun Tsuchiya was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Apr 08
KH Neochem Co., Ltd. to Report Q1, 2022 Results on May 10, 2022 KH Neochem Co., Ltd. announced that they will report Q1, 2022 results on May 10, 2022 Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorated over the past week After last week's 15% share price decline to JP¥2,425, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Chemicals industry in Japan. Total loss to shareholders of 6.6% over the past three years. Reported Earnings • Feb 08
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: JP¥369 (up from JP¥109 in FY 2020). Revenue: JP¥117.1b (up 51% from FY 2020). Net income: JP¥13.7b (up 238% from FY 2020). Profit margin: 12% (up from 5.2% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.9%. Over the next year, revenue is forecast to grow 2.9%, compared to a 6.6% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth.