By Kosaku Narioka


Nippon Paint Holdings Co. shares rose sharply Wednesday morning after it projected a 23% increase in net profit in 2023, citing a recovery from the pandemic in China and the anticipated normalization of car supply chains.

The shares were recently 8.4% higher at 1,234 yen after rising as much as 12% earlier.

The Japanese paint maker said Tuesday after market close that it expected net profit to rise to Y98.00 billion ($736.2 million) and revenue to climb 7.0% to Y1.400 trillion in 2023 thanks to sales growth in various regions and business areas.

Nippon Paint projects revenue from its China business to increase by a range between 5% and 10% in local currency terms.

The paint maker anticipates a recovery from the Covid-19 pandemic in China and other parts of Asia this year as well as the normalization of supply chains in the global auto industry, despite a projected market slowdown in developed economies amid high inflation.

For the quarter ended Dec. 31, net profit rose 35% from a year earlier to Y24.2 billion and revenue increased 26% to Y329.1 billion.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

02-14-23 2132ET