Management Briefing: Presentation on Mid-Term Growth Opportunities in Environmental Solutions Centered on Activated Carbon

Research evidence excerpt

Management Briefing: Presentation on Mid-Term Growth Opportunities in Environmental Solutions Centered on Activated Carbon

Update

June 19, 2026 04:04 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKuraray (3405) | Japan Takato Watabe

Equity Analyst

Management Briefing: Takato.Watabe@morganstanleymufg.comRyoichi Watanabe +81 3 6836-5436

Ryoichi.Watanabe@morganstanleymufg.com +81 3 6836-8929

Presentation on Mid-Term Kayoko Shoji

Research Associate

Kayoko.Shoji@morganstanleymufg.com +81 3 6836-5437

Growth Opportunities in Kano Fujita

Kano.Fujita@morganstanleymufg.com +81 3 6836-8932

Environmental Solutions

Centered on Activated Carbon

Pace of profitability improvement is slow, but we expect earnings growth over

Kuraray (3405.T, 3405 JT)

the longer term: The company held a management briefing on the morning of 19

Electronic Chemicals | Japan

June. Senior management from its US activated carbon subsidiary, Calgon Carbon

Stock Rating Equal-weight

(CC), outlined growth opportunities in the environmental solutions business, Industry View In-Line

centered on activated carbon. Regarding US PFAS regulations for drinking water, the Price target ¥1,750

Shr price, close (Jun 18, 2026) ¥1,754

company indicated no change from prior assumptions, with compliance expected in Mkt cap, curr, basic (bn) ¥538.4

April 2029 following a three-year monitoring period plus a two-year grace period. As Avg daily trading value (bn) ¥2.8

a solution for PFAS removal, granular activated carbon was positioned as superior to

alternative technologies (such as ion exchange resins and RO membranes) in terms

of operating costs. The company estimates the US drinking water PFAS treatment

market to reach $1.0bn to $2.0bn annually by 2032, with activated carbon expected

to account for 75% of the market.