KH Neochem (4189) Q2 2024 earnings summary

Executive summary

• Net sales for 1H 2024 were ¥55,921 million, a 3.3% decrease year-over-year.

• Operating income rose 7.2% to ¥4,816 million, exceeding both the previous year and forecasts.

• Net income attributable to owners increased 7.5% to ¥3,310 million year-over-year.

• Comprehensive income for the period was ¥3,839 million, up 6.7% from the prior year.

• Interim dividend maintained at ¥45 per share as forecasted.

Financial highlights

• Operating income margin improved to 8.6% from 7.8% year-over-year.

• EBITDA increased 6% year-over-year to ¥7.2 billion.

• Ordinary income for the six months was ¥4,678 million, a 3.9% increase year-over-year.

• Basic earnings per share for the period were ¥89.37, up from ¥83.09 in the prior year.

• Cash flows from operating activities improved to ¥5.1 billion from -¥0.3 billion year-over-year.

Outlook and guidance

• Full-year 2024 net sales are forecast at ¥121,100 million, a 5.1% increase from the previous year.

• Operating income is projected to reach ¥11,800 million (up 18.6%), and net income attributable to owners is forecast at ¥8,400 million (up 23.1%).

• Basic earnings per share for the full year are expected to be ¥226.87.

• Full-scale recovery in the semiconductor market is projected for the second half of the year.

• Expansion of next-generation semiconductor materials facilities scheduled for completion in 4Q 2024.