Kansai Paint (4613.T): Update - highlighting the stock while investor interest is low

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Kansai Paint (4613.T): Update - highlighting the stock while investor interest is low

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02 Jul 2026 02:35:51 ET │ 15 pages

Kansai Paint (4613.T)

Update - highlighting the stock while investor interest is low

CITI'S TAKE

We revise our forecasts. While concerns persist including the impact of the

Middle East situation (higher material prices, risk of price hikes depressing

demand), system issues in Japan, and weather concerns in India, price Buy

pass-through appears to be progressing smoothly compared to the Price (01 Jul 26 15:30) ¥2,642.5

previous period of material price inflation (2021-2022). Indian volumes

remain solid. Restructuring is also making headway in Europe. We also think Target price ¥3,100.0↑

the full acquisition of Turkish equity-method affiliate Polisan (though not from ¥2,900.0

well understood by the stock market) should contribute to EPS Expected share price return 17.3%improvement. In our view, while investor interest is now low, this may be a

good time to pay attention to the stock. Expected dividend yield 4.2%

Expected total return 21.5%

Earnings — We raise our FY3/27 OP forecast from ¥46.7bn to ¥51.9bn and our Market Cap ¥465,202M

segment profit forecast from ¥52.7bn to ¥57.6bn. We factor in smooth progress in

US$2,879Mprice pass-throughs across segments, solid Indian volumes, and naphtha prices

returning to near pre-Middle East crisis levels.

India — Automotive coatings appear strong, likely helped by Maruti Suzuki's new

plant starting operations from April. Decorative paints also saw market recovery Price Performance

sentiment noted by paint companies in Q4, with volume resilience continuing into (RIC: 4613.T, BB: 4613 JP)

Q1. Additionally, multiple price hikes were implemented from January to June (we