KH Neochem (4189) investor relations material

Executive summary

• Operating income for FY2026 1H rose 25% year-over-year to 7.5bn yen, driven by strong performance in Electronic Materials and Basic Chemicals, despite a 9% decline in net sales to 53.3bn yen.

• EBITDA increased 17% year-over-year to 10.6bn yen, and profit attributable to owners of parent grew 34% to 5.3bn yen.

• Comprehensive income for the period was 6.88bn yen, up 66.5% from the prior year.

• Price increases and agile adaptation to raw material cost spikes offset lower sales volumes caused by Middle East tensions and maintenance shutdowns.

Financial highlights

• Net sales: 53.3bn yen (down 9% YoY); Operating income: 7.5bn yen (up 25% YoY); EBITDA: 10.6bn yen (up 17% YoY); Profit attributable to owners: 5.3bn yen (up 34% YoY).

• Ordinary income rose 29% YoY to 7.4bn yen.

• Basic earnings per share increased to 150.85 yen from 108.10 yen in the prior year period.

• Cash flows from operating activities increased to 7.8bn yen from 5.8bn yen YoY.

• Total assets as of June 30, 2026, were 132.1bn yen, with net assets at 77.6bn yen.

Outlook and guidance

• Full-year FY2026 forecast: Net sales 114.0bn yen, operating income 13.5bn yen, net income attributable to owners 8.7bn yen.

• Basic earnings per share for the full year are forecast at 248.45 yen.

• Continued focus on flexible pricing and business structure reform to address raw material volatility and market uncertainty.

• Strategic investments in semiconductor materials to accelerate growth in Electronic Materials.

• Dividend forecast revised upward to 130 yen per share for FY2026.