KH Neochem (4189) Q3 2026 earnings summary

Executive summary

• 9M 2026 net sales declined 3.4% YoY to ¥83,608 million, while operating income rose 22.3% to ¥10,398 million and net income rose 29.7% to ¥7,296 million.

• Electronic Materials growth and Basic Chemicals gains offset weaker Performance Materials; the operating margin improved to 12.4% from 9.8%.

Financial highlights

• 9M ordinary income rose 26.5% YoY to ¥10,445 million; net income attributable to owners of parent rose 29.7% to ¥7,296 million.

• 9M EBITDA increased 15% to ¥15.1bn; comprehensive income rose 35.4% to ¥8,260 million.

• Pricing effects and inventory benefits outweighed lower volume and product mix; periodic maintenance increased fixed manufacturing costs.

Outlook and guidance

• FY2026 guidance was unchanged: net sales ¥114,000 million, operating income ¥13,500 million, ordinary income ¥12,600 million and parent-attributable profit ¥8,700 million.

• FY2026 forecast EBITDA is ¥20.1bn; 9M progress against full-year forecasts was 73% for sales, 77% for operating income, 83% for ordinary income, 84% for parent-attributable profit and 75% for EBITDA.

• FY2026 basic EPS forecast is ¥248.45; dividend forecast remains ¥130 per share, comprising ¥55 interim and ¥75 year-end.

• Electronic Materials plans capacity and supply-infrastructure expansion and quality-control investment to address advanced semiconductor demand.

• Initiatives include targeting China recovery and U.S. commercial air-conditioning demand, expanding in India and ASEAN, and pursuing Basic Chemicals cost reductions and pricing actions.