2023 Research Report on the Coatings and Ink Industry

【Answer 1】 (1) Dongfang Materials [003110.SH]: Founded in 1983, with registered capital exceeding RMB 143.7 million. The company was listed on the Shanghai Stock Exchange on October 13, 2017. It primarily manufactures raw materials for China’s flexible packaging industry, with three core product lines: inks for pharmaceutical and food flexible packaging, polyurethane adhesives for plastic flexible packaging lamination, and liquid photoimageable solder mask polymer shielding materials for PCBs. (2) Qicai Chemical [300758.SZ]: Established in June 2006 and headquartered in Teng’ao Economic Development Zone, Haicheng City, Liaoning Province. The company specializes in the R&D, production, and sales of high-performance organic pigments, solvent dyes, and related intermediates, and is one of China’s leading producers of high-performance organic pigments, with extensive industry experience. (3) Jinli Tai [300225.SZ]: Founded in 1993, it is a leading listed enterprise specializing in R&D, manufacturing, sales, and services for high-performance coatings. Its products are widely applied in passenger vehicles, commercial vehicles, construction machinery, industrial components, and architectural curtain walls for protection and decoration. 3.7 Key Global Competitors Major non-Chinese global enterprises include Sherwin-Williams [SHW.US], Asian Paints [APNT.IN], PPG Industries [PPG.US], Sika [SIKA.VX], Nippon Paint [4612.JP], and Akzo Nobel [AKZA.NA]. Figure: Major Non-Chinese Global Enterprises Source: Asset Information Network, Qianji Investment Banking (1) Sherwin-Williams [SHW.US]: A U.S.-based paint and coatings manufacturer headquartered in Cleveland, Ohio. The company manufactures, distributes, and sells paints, coatings, floor coverings, and related products primarily to professional, industrial, commercial, and retail customers across North America, South America, and Europe. (2) Asian Paints [APNT.IN]: An Indian multinational paint company headquartered in Mumbai, Maharashtra. It manufactures, sells, distributes, and provides services related to paints, coatings, home décor products, and bathroom accessories. Asian Paints is India’s largest and Asia’s second-largest paint company, and serves as the holding company of Berger International. (3) Nippon Paint [4612.JP]: A Japanese paint and coatings manufacturer. Ranked as the world’s fourth-largest paint manufacturer by revenue in 2020, it operates subsidiaries in over 20 countries. Its business spans multiple domains, with its architectural coatings, automotive coatings, general industrial coatings, coil coatings, heavy-duty anti-corrosion coatings, and powder coatings ranking among the industry’s best. Chapter IV: Future Outlook The coatings and ink industry will further develop during China’s 14th Five-Year Plan period. As downstream industries—including automobile manufacturing and high-end consumer electronics—continue expanding, growing downstream demand will drive market expansion for the midstream coatings and ink industry.

Both Sherwin-Williams (SHW) and JD.com (JD) pursue ultra-efficient logistics—so why has Sherwin-Williams become a long-term market leader while JD.com remains mired in a deep correction?

【Answer 2】 First, Sherwin-Williams’ logistics system represents an exceptionally rare end-to-end vertically integrated closed loop among U.S. equities. Paint flows directly from its factories into its own warehouses, onto its own trucks, into its own stores, and finally to contractors—eliminating intermediaries, distributor payment delays, and accounts receivable losses. Its more than 4,900 company-owned stores function not merely as retail outlets but as ‘micro-fulfillment centers’ located within five kilometers of construction sites. Leveraging its proprietary fleet and sophisticated dispatch systems, Sherwin-Williams can deliver custom-colored paint precisely to the top floor of a construction site within two hours. Second, differences in brand pricing power. JD.com does not manufacture goods; fundamentally, it functions as an intermediary platform. Speedy logistics is its ‘underwear’—a basic necessity—not an ‘external enhancement’. In today’s hyper-competitive e-commerce environment, if you’re slow, users flee to Pinduoduo; yet even if you’re fast, any attempt to raise prices triggers immediate user attrition. JD.com’s logistics advantage, while valuable, is largely diluted into a cost of survival amid relentless price wars. Construction sites operate under entirely different logic: labor costs dominate contractors’ budgets, and their greatest fear is ‘work stoppage due to material shortage’. Color-matching is a highly technical process demanding extreme precision—a capability no general merchandise store can replicate. Sherwin-Williams’ speed thus becomes a ‘premium tool’ fostering customer dependency. Sherwin-Williams confidently raises prices annually because contractors aren’t just buying paint—they’re purchasing the certainty of uninterrupted work. Moreover, in terms of competition, JD.com contends with TikTok—superior in algorithm-driven engagement—and Pinduoduo—unmatched in low-cost efficiency. With no geographical boundaries online, competition is global and all-encompassing.

PineStone Asset Management Inc. Sells 39,720 Shares of The Sherwin-Williams Company $SHW

12 hours ago

PineStone Asset Management reduced its stake in Sherwin-Williams by 2.5% in Q3, selling 39,720 shares while maintaining a $493 million holding. Analysts maintain a Moderate Buy rating following strong earnings and positive fiscal 2026 EPS guidance.

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