ScoreWhy is KH Neochem Co., Ltd. ?
1
Weak Long Term Fundamental Strength with a 9.41% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Operating profit has grown by an annual rate 9.41% of over the last 5 years
3
Flat results in Jun 26
- INTEREST(HY) At JPY 112 MM has Grown at 10.89%
- NET SALES(HY) At JPY 53,299 MM has Grown at -9.28%
- DIVIDEND PAYOUT RATIO(Y) Lowest at 48.96%
4
With ROCE of 12.46%, it has a very attractive valuation with a 1.36 Enterprise value to Capital Employed
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 27.54%, its profits have fallen by -12.1%
5
Underperformed the market in the last 1 year
- The stock has generated a return of 27.54% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to KH Neochem Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is KH Neochem Co., Ltd. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
KH Neochem Co., Ltd.
25.31%
1.96
28.65%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.89%
EBIT Growth (5y)
9.41%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.92
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.38
Tax Ratio
25.50%
Dividend Payout Ratio
48.14%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
16.48%
ROE (avg)
14.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.44
EV to EBIT
10.94
EV to EBITDA
6.82
EV to Capital Employed
1.36
EV to Sales
1.04
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.46%
ROE (Latest)
10.82%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 12,267.86
RAW MATERIAL COST(Y)
Fallen by -41.06% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 11.56 %
DIVIDEND PER SHARE(HY)
Highest at JPY 3.46
OPERATING PROFIT(Q)
Highest at JPY 6,870 MM
OPERATING PROFIT MARGIN(Q)
Highest at 24.79 %
PRE-TAX PROFIT(Q)
Highest at JPY 5,521 MM
NET PROFIT(Q)
Highest at JPY 3,934 MM
EPS(Q)
Highest at JPY 112.34
-13What is not working for the Company
INTEREST(HY)
At JPY 112 MM has Grown at 10.89%
NET SALES(HY)
At JPY 53,299 MM has Grown at -9.28%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 48.96%
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.54 times
Here's what is working for KH Neochem Co., Ltd.
Interest Coverage Ratio
Highest at 12,267.86
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at JPY 6,870 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 24.79 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 5,521 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 5,521 MM has Grown at 75.1%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 3,934 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 3,934 MM has Grown at 81.63%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 112.34
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Debt-Equity Ratio
Lowest at 11.56 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at JPY 3.46
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -41.06% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for KH Neochem Co., Ltd.
Interest
At JPY 112 MM has Grown at 10.89%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 53,299 MM has Grown at -9.28%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Inventory Turnover Ratio
Lowest at 3.54 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend Payout Ratio
Lowest at 48.96%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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