- Nippon Paint’s operating income for the third quarter is 47.27 billion yen, slightly down by 1.3% compared to last year and below the estimated 50.25 billion yen.
- The company’s net income for the same period is 31.86 billion yen, a decrease of 2.1% year-over-year and short of the 34.31 billion yen forecast.
- Net sales have increased by 3.2% year-over-year to 405.60 billion yen, yet this figure falls short of the projected 424.11 billion yen.
- For the full year, Nippon Paint maintains its forecast for operating income at 184.00 billion yen, which is below the market estimate of 186.15 billion yen.
- The full-year net income prediction remains at 124.00 billion yen, again under the estimated 129.78 billion yen.
- The company continues to expect net sales of 1.60 trillion yen for the year, slightly below the forecasted 1.61 trillion yen.
- The anticipated dividend remains at 15.00 yen, just under the estimate of 15.38 yen.
- Investment sentiment includes 5 buy ratings, 6 hold ratings, and no sell ratings.
Nippon Paint Holdings on Smartkarma
Analyst coverage of Nippon Paint Holdings on Smartkarma indicates positive sentiment towards the company’s performance. In a report by analyst Steve titled “Nippon Paint (4612 JP): Stable Execution in 2Q24; Outlook Unchanged,” it was noted that Nippon Paint experienced steady growth in sales and profit in the second quarter of 2024, with China driving strong performance. The company maintained its operating profit target for 2024 and upheld its full-year guidance of Y184bn operating profit, showing a 10% growth compared to the previous year. China, in particular, was highlighted as a bright spot with a significant contribution to the company’s total operating profit.
Another report by the same analyst, Steve, titled “Nippon Paint (4612 JP): Strong 1Q24; Overlooked Proxy For China Property,” emphasizes Nippon Paint as a standout leader in decorative paint in China, holding a substantial market share. The report suggests that Nippon Paint Holdings is a good proxy for exposure to the Chinese property market with downside protection. With China constituting a significant portion of Nippon Paint’s operating profit, the company’s performance in the first quarter of 2024 showcases its strategic positioning and potential in the Chinese property sector.
A look at Nippon Paint Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at the Smartkarma Smart Scores for Nippon Paint Holdings, the company seems to have a promising long-term outlook. With a standout momentum score of 5, Nippon Paint Holdings appears to be on a strong growth trajectory. This is supported by a growth score of 4, indicating potential for expansion and development. Additionally, the company also scores well on value and resilience, with scores of 3 on both fronts. This signifies a solid foundation and stability within the company’s operations.
Nippon Paint Holdings may have room to improve in terms of dividend payouts, as it received a score of 2 in this area. However, overall, the company’s positive scores across various key factors showcase its potential for long-term success in the industry. With a focus on producing paints for a range of applications and also venturing into fine chemicals, Nippon Paint Holdings appears to be positioned well for continued growth and innovation in the future.
***Summary: Nippon Paint Holdings Co., Ltd. specializes in manufacturing paints for automobiles, ships, and industrial purposes. The company also produces fine chemicals like finishing agents and adhesives, showcasing a diverse product portfolio with a focus on quality and innovation.***
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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