Chugoku Marine Paints

Research evidence excerpt

Chugoku Marine Paints

Global Markets Research

3 July 2026Chugoku Marine Paints

4617.T 4617 JP / EQUITY: JAPAN CHEMICALS & TEXTILES

RatingCompany discloses 27/3 profit guidance Buy

Target price JPY 5,000Quick Note

Closing price

3 July 2026 JPY 3,485First impression positive: Company discloses 27/3 profit guidance

Chugoku Marine Paints disclosed a guidance range of ¥140.0–160.0bn (up 0.5–14.8% y- (Note: Quick Note reports are not a

y) for 27/3 sales when it released 26/3 results on 11 May 2026, but did not disclose profit vehicle for changes to ratings, target

guidance. It revised its sales guidance to ¥160.0bn (up 14.8%) after the close of trading on prices, or earnings forecasts)

3 July, and also disclosed guidance of ¥17.5bn (up 0.4%) for operating profits, ¥18.0bn

(up 0.9%) for recurring profits, and ¥11.0bn (flat) for profits attributable to owners of the

parent.

Absorbing almost all of the impact of higher naphtha prices Research Analysts

The company has now disclosed profit guidance in light of the situation in the Strait of Japan small cap

Hormuz, and its operating profit guidance suggests that it has broadly offset the impact of Mikihiko Yamato - NSC

high naphtha prices. Maintenance projects, which account for just over 50% of marine mikihiko.yamato@nomura.com

coating sales, have short lead times of two or three months, and we therefore see only a +81 3 6703 1186

limited impact from high input costs.

Elsewhere, demand from new ships, which accounts for over 40% of sales, is susceptible

to rising input costs owing to lead times of two to three years, but price revisions have

been steadily gaining traction in Japan, where coatings for new ships account for a certain

proportion of sales, and it looks as though around half of customers in South Korea have