CHUGOKU MARINE PAINTS,LTD.
4617・Prime Market・Chemicals
Japan
Core segment of the domestic paints business, mainly comprising marine and industrial paints.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers) | ¥44,939 million | ¥42,721 million | ↑ |
| Segment profit | ¥3,287 million | ¥2,220 million | ↑ |
| Segment assets | ¥65,497 million | ¥63,753 million | ↑ |
| Depreciation | ¥624 million | ¥543 million | ↑ |
| Increase in property, plant and equipment and intangible assets (capital expenditure) | ¥1,345 million | ¥817 million | ↑ |
| Segment profit margin | 7.3% | 5.2% | ↑ |
Business Details
Consists of consolidated subsidiaries including Chugoku Meishin Chemical and Kobe Paint, centered on Chugoku Marine Paints itself. Produces and sells Marine Paints for Newbuilding Vessels and for Repair Vessels, as well as Industrial Paints (Heavy-Duty Anti-Corrosion & Building Materials for plants), and also engages in Real Estate Management Services, etc. It serves as the core domestic manufacturing base that also handles internal transfers to overseas segments. During the period, profitability improved significantly through sales price rationalization and expanded sales of high-value-added products.
Recent Overview
Profit improved significantly, up 48.0% year on year, driven by sales price rationalization and expanded sales of high-value-added products.
In the Japan segment for FY2026 (ending March 2026), sales were ¥44,939 million (up 5.2% year on year) and segment profit was ¥3,287 million (up 48.0% year on year), representing a significant improvement in profitability. Although some low-profitability projects remain for newbuilding vessels, efforts to rationalize sales prices in line with manufacturing costs and expand sales of high-value-added products were successful. Recovery in demand for building material paints also contributed. In addition, the company resolved to absorb its wholly owned subsidiary Bunsho Shoji (effective July 1, 2026, planned), promoting the consolidation of sales channels and greater operational efficiency.
Key Products
Growth Drivers
- Steady demand for Marine Paints for Newbuilding Vessels and for Repair Vessels, and continued sales price rationalization in line with manufacturing costs
- Expanding demand for high-performance antifouling bottom paints and other high-value-added products driven by compliance with IMO fuel efficiency regulations
- Recovery in domestic demand for building material paints and steady performance of heavy-duty anti-corrosion paints for plants
- Improved profitability through expanded sales of high-value-added and Environmentally Friendly Paints
- Consolidation of sales channels and improved operational efficiency through the planned absorption-type merger of wholly owned subsidiary Bunsho Shoji (planned for July 2026)
Risks
- Some low-profitability projects for newbuilding vessels remain below the break-even point, constraining room for margin improvement
- Risk of increased manufacturing costs from continued rises in raw material procurement costs amid Middle East tensions (securing procurement from July onward is a challenge in Japan, South Korea, and Southeast Asia)
- Risk of declining profitability of fixed assets, as seen in impairment losses on domestically held real estate, etc. (¥152 million in the current period, ¥928 million in the prior period)
- Profit pressure from rising costs, mainly transportation expenses (¥5,777 million in the current period) and personnel expenses (¥10,295 million in officer compensation and employee salaries, etc.)
- Risk of demand fluctuation due to changes in order trends and construction investment in the domestic shipbuilding industry
Last updated: June 23, 2026