By Kosaku Narioka

Nippon Paint Holdings Co. shares rose sharply on Thursday as the company stuck to its profit target despite the recent surge in crude oil prices.

Nippon Paint shares were recently 12% higher at 1,063 yen after rising as much as 16% earlier.

The Japanese paint maker said Wednesday that its operating profit goal of Y140.00 billion ($1.18 billion) in 2023 will be achievable due to margin improvement and market-share gains. That would compare with Y87.615 billion in 2021.

Some declines in crude oil prices in recent days are also providing a tailwind for paint makers that use oil products for production. Shares of domestic peer Kansai Paint Co. were recently 3.1% higher.

Tomotaro Sano, an analyst at JPMorgan Securities Japan, said in a note that Nippon Paint can grow its sales thanks in part to market-share gains in Japan and the rest of Asia and it can expand into new regions through acquisitions.

Mizuho Securities analysts said in a note that the company's affirmation of its profit goal was encouraging but didn't fully remove concerns about the impact of higher crude oil prices and supply-chain disruption.


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


(END) Dow Jones Newswires

03-17-22 0213ET