Kansai Paint (4613): Briefing: Policy to pass through higher raw material costs to product prices

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Kansai Paint (4613): Briefing: Policy to pass through higher raw material costs to product prices

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Kansai Paint (4613)

Briefing: Policy to pass through higher raw

material costs to product prices

Maintain Rating: BUY | PO: 2,700 JPY | Price: 2,366 JPY

11 May 2026

Earnings: FY3/26 results slightly weak; FY3/27 plan does Equity

not factor in Middle East impact

Segment profit (operating profit plus equity-method investment profit) for FY3/26 came Takashi Enomoto >> Research Analyst

in at ¥53.9bn, slightly below our estimate of ¥55.5bn and guidance of ¥56.0bn. While BofAS Japan

Africa performed better than expected, Japan, India, and Asia fell short. The company’s +81takashi.enomoto@bofa.com3 6225 8362

FY3/27 plan shows segment profit of ¥57.0bn, exceeding our estimate of ¥42.0bn. Niima Komura >>

However, the plan does not factor in the impact of the Middle East situation (such as Research Analyst

higher raw material and fuel prices). The dividend forecast is ¥110 (unchanged YoY), BofAS+81 3 6225Japan7725

which should provide downside support through dividend yield. Although there is a high niima.komura@bofa.com

likelihood that guidance will be revised downward, dividend yield should offer support. Kyoji Chiba >>

Research Analyst

There were no surprises in either the results or guidance. BofAS Japan

+81 3 6225 7189

Briefing session: Price pass-through to be delayed kyoji.chiba@bofa.com

At the briefing, mgmt. stated that while the impact of higher raw material and fuel

prices will involve timing lags, the company’s policy is to fully pass through cost

increases. However, concrete requests for price hikes are currently limited to certain Stock Data

products such as thinners. Raw material cost pressure is expected to have a significant Price 2,366 JPY