Nippon Paint Holdings (4612) 1Q FY2026 results: Positive impression after earnings beat vs. consensus

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Nippon Paint Holdings (4612) 1Q FY2026 results: Positive impression after earnings beat vs. consensus

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

15 May 2026

Nippon Paint Holdings (4612) Overweight

4612.T, 4612 JP

1Q FY2026 results: Positive impression after earnings Price (15 May 26):¥999

beat vs. consensus Price Target (Dec-26):¥1,600

Positive: Nippon Paint Holdings reported 1Q (January–March) FY2026 results Japan Equity Research

after the May 15 market close, and held a briefing. We have a positive impression

Chemical, Steel

of the results. The reason for our view is that although media reports had

highlighted potential procurement disruptions and rising raw material prices amid Yasuhiro Nakada AC

the worsening Middle East situation, the company delivered earnings above the (81-3) 6736-8692

yasuhiro.nakada@jpmorgan.com

consensus and indicated it can still achieve full-year guidance through measures JPMorgan Securities Japan Co., Ltd.

such as timely price pass-through going forward.

• Results: 1Q FY2026 operating profit beat the Bloomberg consensus average

by 6.8% on a reported (tanshin) basis and by 15.1% on an adjusted basis.

Despite supply concerns for materials such as thinners after the deterioration

in the Middle East situation, the company leveraged its procurement

capabilities to fulfill its supply responsibilities and also met incremental

demand from customers building inventories. In China, while market

conditions remain sluggish, the company delivered higher sales and profit and

improved margins, supported by expanded sales of non-paint products in TUC

and higher volumes for automotive applications. At AOC, sales declined 2%

YoY, but management stated it has maintained strong margins and cash

generation abiity.