KUALA LUMPUR: A thriving property market can significantly benefit the paint industry, driving up demand and potentially increasing revenues for paint manufacturers and distributors, according to industry insiders.
"When the property market is doing well, there's typically a surge in construction, renovation, and real estate transactions," noted one insider.
"This results in heightened demand for paints and coatings across various property development and maintenance activities, including interior and exterior painting, new building construction, renovations, and property upkeep."
He emphasised that as more properties are constructed or renovated, the need for paint products, both for decorative purposes and protective coatings, naturally escalates.
This surge in demand, he said, can offer companies more business opportunities and pave the way for growth.
"Moreover, a thriving property market often signals economic prosperity and consumer confidence, leading to increased spending on home improvement projects," he added.
"This further bolsters the demand for paints and coatings as homeowners invest in enhancing their properties' appearance and value."
Smart Asia Chemical Bhd, listed on Bursa Malaysia's ACE Market today, is optimistic about the paint industry's prospects for the year, buoyed by positive growth in the property market and rising demand for painting products.
Managing director Goh Chye Hin acknowledges the challenge of expanding market share in a competitive landscape.
With the company's current market share standing at 0.59 per cent due to limited capacity, plans are underway to construct a new plant in Batu Gajah, Perak, with the aim of boosting market share to 2.6 per cent through full utilisation of the new facility.
During its debut, the company opened at 50 sen per share, a 10 sen premium over its IPO price of 40 sen, with brisk trading seeing 9.73 million shares exchanged.
The IPO aimed to raise RM37.4 million, with a significant portion allocated for the Batu Gajah plant's construction, the purchase of automated paint production systems, and the acquisition of Smart Colour POS Tinting Machines.
The company's primary focus is on developing, manufacturing, and distributing decorative paints, protective coatings, and related products for household and industrial use.