KH Neochem (4189) Earnings: Operating Profit Up 24.9% YoY to 7.51 Billion Yen, Net Income Increases 34.3%

KH Neochem (4189) announced its financial results, reporting net sales of 53,299 million yen, a decrease of 9.3% year-on-year. Despite the lower top line, profitability improved significantly: operating profit rose 24.9% year-on-year to 7,501 million yen, ordinary profit increased 29.3% to 7,448 million yen, and net income attributable to owners of the parent grew 34.3% to 5,282 million yen. Comprehensive income also surged 66.5% to 6,879 million yen, with earnings per share (EPS) standing at 150.85 yen.

From a financial and valuation perspective, the company recorded a Return on Equity (ROE) of 7.69% and a Return on Assets (ROA) of 4.05%. The company demonstrated robust cash generation capabilities, posting 7.81 billion yen in operating cash flow and 4.86 billion yen in free cash flow after investments. Cash and cash equivalents stood at 7.80 billion yen, while EBITDA reached 7.50 billion yen. These figures highlight a sound financial foundation supported by improved profit margins and steady cash flow generation despite the revenue decline.