• Nippon Paint reported an operating income of 42.66 billion yen in 1Q, which is a 22% increase year over year (y/y). This beat the estimated operating income of 40.58 billion yen.
• The company also reported a net income of 30.28 billion yen, marking a 19% increase y/y.
• The net sales of the company stood at 384.32 billion yen, a 16% rise y/y, beating the estimated 366.23 billion yen.
• The company maintains its year forecast with an estimated operating income of 184.00 billion yen, an estimated net income of 124.00 billion yen, and an estimated net sales of 1.60 trillion yen.
• Nippon Paint also anticipates a dividend of 15.00 yen, against the estimated 15.52 yen.
• The company’s performance has earned it 4 buys, 5 holds, and 0 sells.
• All the comparisons made here are based on the values reported by from the company’s original disclosures.
Nippon Paint Holdings on Smartkarma
Analyst coverage of Nippon Paint Holdings on Smartkarma indicates a positive outlook. According to Steve Zhou, CFA, in the research report titled “Nippon Paint (4612 JP): Results Beat On Resilient China 2C Business,” Nippon Paint Holdings reported strong 3Q23 results, driven by its robust China decorative paint business. The company also raised its 2023 operating profit guidance, expecting a 6% increase in operating profit compared to previous estimates. With a forward PE ratio of 21x, Nippon Paint Holdings is deemed attractively valued considering its growth prospects and dominant market position across various end-markets.
A look at Nippon Paint Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
When looking at the Smartkarma Smart Scores for Nippon Paint Holdings, the company seems to have a promising long-term outlook. With a strong Growth score of 4, Nippon Paint Holdings is positioned well for future expansion and development. This indicates that the company is likely to see increasing revenue and profitability in the coming years.
Although the Dividend and Resilience scores are at 2, suggesting room for improvement in terms of dividend payouts and ability to withstand economic challenges, the Value and Momentum scores at 3 each show a balanced performance in terms of stock valuation and market momentum. Overall, Nippon Paint Holdings appears to be a company with growth potential in its industry, specializing in the production of paints for various sectors and fine chemicals.
### NIPPON PAINT HOLDINGS CO., LTD. produces paints for automobiles, ships, and other industrial paints. The Company also manufactures fine chemicals such as finishing agents and adhesives. ###
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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