In today’s briefing:
- Nippon Paint (Part I): A Deep Dive into NP’s Japan Business
- Growth in Corporate Value over Longer Term Is More Important than Meeting Immediate Listing Criteria
Nippon Paint (Part I): A Deep Dive into NP’s Japan Business
- This is the First of a series of reports on Nippon Paint Holdings (4612 JP) and in this insight, we deep dive into the company’s Japanese business.
- The automotive coating biz in Japan is heavily reliant on the domestic automotive market while decorative paints is facing challenges due to slowdown in population in the country.
- The outlook for Japan biz remains stagnant with growth rates slowing down and margins on a downward trend.
Growth in Corporate Value over Longer Term Is More Important than Meeting Immediate Listing Criteria
- Largest 500 companies in prime market of 1,800 companies account for 90% of the market capitalization, which shows how low the listing standard of JPY10 billion tradable market capitalization is.
- It’s more important to implement measures that will grow corporate value over the medium-t0-long term than whether or not the market capitalization standard can be achieved by March 2025.
- Since companies that choose standard market at market reclassification include companies that don’t want to resolve corporate governance issues, more companies in standard market won’t be proactive in corporate governance.
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