KH Neochem Co.,Ltd. (4189) Stock Price

KH Neochem is a petrochemical manufacturer and distributor that provides diverse chemical products with oxo technology as its core competency. Oxo technology is a process that manufactures aldehydes from olefins and oxo gas as raw materials. The company began large-scale aldehyde production in 1970 and has since expanded its product portfolio to include alcohols and fatty acids. It supplies solvents, plasticizer raw materials, and functional materials to domestic and international markets.

KH Neochem's business is divided into three segments: functional materials, electronic materials, and basic chemicals. In functional materials, the company manufactures and sells refrigeration oil raw materials used in air conditioners and refrigerators, as well as specialty diols used in cosmetics. Key products include Kyowa Noic-N (isononanoic acid), octylic acid, and 1,3-butylene glycol.

In electronic materials, the company supplies high-purity solvents used in the manufacturing of liquid crystal displays, semiconductors, and photoresists. Major products include propylene glycol monomethyl ether-P (PM-P) and propylene glycol monomethyl ether acetate-P (PMA-P), which are manufactured using advanced quality control expertise.

In basic chemicals, the company manufactures and sells solvents, plasticizer raw materials, and resin raw materials used in automobiles and construction. Key products include butanol, octanol, Oxocol 900 (isononyl alcohol), and butyl acetate, which are widely used as raw materials for paints, adhesives, and synthetic resins.

KH Neochem's subsidiaries include Kurokin Kasei Co., Ltd., Kurokin Fines Co., Ltd., and J-Plus Co., Ltd. These companies manufacture and sell high-performance organic materials for electronics and medical applications, distribute health food and pharmaceutical raw materials, and manufacture and sell plasticizers. The company also operates overseas through KH Neochem Americas, Inc. and Shenghua (Shanghai) Trading Co., Ltd., which handle chemical imports, exports, sales, and market research.

KH Neo Chem has established "VISION 2030," a growth strategy targeting 2030, with the goal of solidifying its position as a specialty chemicals company. Under this vision, the company is advancing the supply of chemical materials that contribute to mitigating global warming and improving quality of life. In particular, it is focusing on expanding world-leading products in refrigeration oil feedstock, cosmetic ingredients, and high-purity solvents, while prioritizing the creation of new businesses and products.

In its medium-term management plan, the company is pursuing "Moving to a New Growth Stage" as its basic policy, implementing three strategies: strengthening earning power, laying groundwork for the future, and reinforcing the management foundation. Specifically, it aims to increase production capacity for functional chemicals and raise their proportion of consolidated operating profit to over 80%. Additionally, the company is improving production efficiency by leveraging cutting-edge technologies such as AI and IoT.

As groundwork for the future, KH Neo Chem is developing new products and businesses. The company is establishing mass production technology for "glycans," a raw material for biopharmaceuticals, with the aim of becoming a top manufacturer, while accelerating commercialization of next-generation optical lens materials. As a measure toward achieving carbon neutrality, the company is introducing CO2 capture equipment to reduce emissions.

In strengthening its management foundation, the company is promoting smart safety to ensure safe and stable operations and improving workplace environments where diverse talent can thrive. Through these efforts, the company aims to advance sustainable management and deploy competitive products globally. As a financial strategy, the company is enhancing shareholder returns by raising its dividend payout ratio to 40% while maintaining stable dividend payments.