Nippon Paint Holdings (4612) Moving to an Overweight rating and a ¥1,500 price target from Not Rated

Research evidence excerpt

Nippon Paint Holdings (4612) Moving to an Overweight rating and a ¥1,500 price target from Not Rated

J P M O R G A N Asia Pacific Equity Research

08 June 2026

Nippon Paint Holdings (4612) Overweight

4612.T, 4612 JP

Moving to an Overweight rating and a ¥1,500 price Price (08 Jun 26):¥963

target from Not Rated Price Target (Dec-26):¥1,500

Following a period of restriction, we are moving to an Overweight rating and a Japan Equity Research

December 2026 price target of ¥1,500 (Overweight rating and December 2026

Chemical, Steel

price target of ¥1,600 prior to restriction) from a Not Rated designation. While we

remain concerned that profit growth will taper in 2Q because of the time needed Yasuhiro Nakada AC

to pass through higher raw material, fuel, and transportation costs to product prices, (81-3) 6736-8692

yasuhiro.nakada@jpmorgan.com

we think Nippon Paint will probably be able to maintain spreads once costs JPMorgan Securities Japan Co., Ltd.

stabilize, and we therefore take a positive view of prospective earnings

improvement over the medium term.

Key Changes (FYE Dec)

• 2Q FY2026 earnings estimates: We forecast 2Q FY2026 operating profit of Prev Cur Δ

¥72.0 billion (+3.3% YoY, +1.5% QoQ). Demand in India, Europe, and the US Adj. EPS - 26E (¥) 77.35 88.14 13.9%

Adj. EPS - 27E (¥) 83.65 93.16 11.4%

typically peaks in 2Q, often resulting in double-digit QoQ profit growth.

However, we forecast a 1.5% QoQ increase this 2Q owing to higher raw Style Exposure

material and fuel costs and a delay in passing them through to prices.

• FY2026 earnings estimates: We forecast FY2026 operating profit of¥286.0

billion (+11.2% YoY). Despite concerns about the conflict in the Middle East

and rising costs due to higher crude oil and naphtha prices, we assume Nippon