Chugoku Marine Paints, one of the domestic leaders in marine coatings, significantly increased revenue and operating profit in its consolidated results for the first quarter of the fiscal year ending March 2027. Its share price had fallen to the ¥3,500 range, but a target price of ¥4,800 has been indicated, prompting expectations of a recovery.
Chugoku Marine Paints holds one of the leading domestic shares in marine coatings and is expanding production capacity through investment in its plants while introducing high-value-added coatings. Although Nippon Paint Holdings and Kansai Paint are entering a reassessment phase amid concerns over higher raw-material costs and supply uncertainty caused by the situation in the Middle East, Chugoku Marine Paints is showing signs of catching up.
First-quarter consolidated revenue was ¥37.82 billion, up 16.0% year on year, and operating profit was ¥5.681 billion, up 44.8%, resulting in higher revenue and profit. Adjustments to selling prices amid the tensions in the Middle East reportedly contributed, while demand for marine coatings remained firm for both newbuilds and vessels undergoing repairs. The share price is around ¥3,500, giving it a sense of being left behind compared with the year-to-date high of ¥4,795.
While concerns remain over higher raw-material costs and supply uncertainty amid the situation in the Middle East, Chugoku Marine Paints is expected to recover on the back of expectations for future growth. As a shipbuilding-related stock, it is part of a popular market theme, and future developments are being watched.