KH Neochem (4189) Q3 2025 earnings summary

Executive summary

• Net sales for FY2025 1-3Q were ¥86.6 billion, nearly flat year-over-year, with a slight decrease of 0.2% YoY.

• Operating income rose 16.2% YoY to ¥8.5 billion, driven by growth in Performance Materials.

• Net income attributable to owners of parent increased 14.3% YoY to ¥5.6 billion.

• Comprehensive income for the period was ¥6.1 billion, up 17.2% YoY.

• Share buyback was completed as planned, with no change in shareholder return policy.

Financial highlights

• Operating income increased 16% YoY to ¥8.5 billion; EBITDA rose 20% YoY to ¥13.2 billion.

• Basic earnings per share for the nine months was ¥156.27, up from ¥132.92 in the prior year.

• Total assets as of September 30, 2025, were ¥124.2 billion, with net assets at ¥69.4 billion.

• Equity ratio improved to 53.6% as of 3Q 2025.

• Ordinary income up 15% YoY to ¥8.3 billion.

Outlook and guidance

• FY2025 full-year net sales forecast is ¥127.4 billion, with operating income forecast at ¥14.0 billion.

• Net income for the full year is expected at ¥10.0 billion, up 19.6% YoY.

• Annual dividend per share is forecast at ¥105.00, up from ¥90.00 in the previous year.

• Progress rates for net sales and operating income are 68% and 61%, respectively, after 1-3Q.