SHINTO PAINT surged on an indicative quote after significantly raising its earnings forecast for the current fiscal year. Ordinary profit was revised to ¥800 million, double the previous fiscal year, with progress in expanding sales and the effects of rationalisation and price revisions cited as the background.
SHINTO PAINT revised its earnings forecast for the fiscal year ending March 2027, significantly raising its previous ordinary profit forecast of ¥450 million to ¥800 million. The revision was announced after the close of trading and is expected to bring ordinary profit to double the previous fiscal year's level.
The reasons cited for the revision include stronger-than-expected progress in expanding sales of some products, rationalisation initiatives and the effects of price revisions. This has attracted market funds and led to an inflow of investment funds. Although the company does not pay a dividend, some observers have pointed to the potential for a revaluation, with its PBR in the 0.3 times range.
SHINTO PAINT has been strengthening its production capacity against a backdrop of growing demand from the automotive sector and its high level of technical expertise, increasing its profile in the market as a mid-sized paint manufacturer. The stock has continued to move higher on an indicative quote, and there is speculation that its perceived value below ¥200 is attracting the attention of short-term investors.