Nippon Paint Holdings (4612) Integrated report briefing

Research evidence excerpt

Nippon Paint Holdings (4612) Integrated report briefing

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

16 July 2026

Nippon Paint Holdings (4612) Overweight

4612.T, 4612 JP

Integrated report briefing Price (16 Jul 26):¥1,082

Price Target (Dec-26):¥1,500

Nippon Paint Holdings held a briefing for its Integrated Report 2026 released June Japan Equity Research

30. Based on the view that ongoing initiatives for the Maximization of Shareholder

Chemical, Steel

Value (MSV) and the results of these initiatives have not been adequately

communicated to the market, it prepared this year’s integrated report after holding Yasuhiro Nakada AC

extensive discussions about how to promote a better understanding in the market (81-3) 6736-8692

yasuhiro.nakada@jpmorgan.com

and contribute to raising enterprise value. We have a positive impression of using JPMorgan Securities Japan Co., Ltd.

investor questions as a starting point for preparing the integrated report with the

aim of directly addressing the gap with market views.

• The integrated report conveys Nippon Paint’s management philosophy based

on the concepts of MSV, compounder, and asset assembler. It provides detailed

explanations about business strategies (M&A, organic growth, capital

allocation, and financial strategy), M&A verification (e.g., AOC and Betek

Boya), valuation approach, ESG, and governance. Nippon Paint also said

during the briefing that it is starting to be recognized as an asset assembler,

rather than the traditional view of it as a specialized paint company, and that the

number of investor relations meetings with investors who see it as a

compounder (compound growth company) and value investment target is

growing.

• During the Q&A session, management was asked about its initiatives in China

and approach to M&A.