Nippon Paint (Vietnam) Co., Ltd (Vietnam)

The subject specializes in manufacturing kinds of paints with brand of "NIPPON" which comes from Japan. This company's products are not only consumed in the domestic market but also exported to ASEAN countries.The subject's ultimate parent company - Nippon Paint Holdings Co., Ltd (aka Nippon Paint Group) has stock listed on the Tokyo Stock Exchange with code: 4612. The subject is dominated directly by a subsidiary of this group in Singapore belonging to this group's NIPSEA Except China area. According to the financial statement of quarter 3 -2023 of this group, this area has a higher revenue overall (+35.5% YoY). Higher revenue at Malaysia Gr driven by pricing flow through, marginally down at Singapore Gr despite strong performance in Singapore and Sri Lanka, affected by weaker Vietnam performance, and lower at Thailand Gr due to a drop in automobile production despite a better Auto Refinish business. To diversify products, in May 2023, Mr. EE SOON HEAN - the subject's General Director announced its expansion into marine paint production. Vietnam's maritime industry has been declared a priority sector by the Vietnamese Government and is on track to become one of the largest shipbuilding and ship repair hubs in Asia. The demand for marine coatings across both domestic and foreign shipping fleets that are dry-docked in Vietnam is projected to increase significantly over the next few years. Over the past two years, drydock capacity has doubled in response to demand shifting from China due to Covid-19 lockdowns, plus the growth of the country's own domestic fleet. Nippon Paint's established facilities in industrial zones in the north, south and central regions of Vietnam will begin producing the company's range of marine anticorrosion and protective coatings imminently, with hull and antifouling products set to be added to production lines in the period 2024-2025.The real estate market and the wood market, which are the main consumer markets of the subject, faced many difficulties in 2023. Real estate projects even stopped construction due to lack of capital. Therefore, supporting industries such as the paint industry also faced many difficulties in 2023. In our opinion, it is difficult for the subject to record brighter revenue than the previous year's data.