Visit to Korean MDI JV: Confirming Drivers of Competitiveness and High Profitability

Research evidence excerpt

Visit to Korean MDI JV: Confirming Drivers of Competitiveness and High Profitability

Update

July 6, 2026 08:54 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MMitsui Chemicals (4183) | Japan Takato Watabe

Equity Analyst

Visit to Korean MDI JV: Takato.Watabe@morganstanleymufg.comRyoichi Watanabe +81 3 6836-5436

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

Confirming Drivers of Kayoko Shoji

Research Associate

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

Competitiveness and High Kano Fujita

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

Profitability

We visited the Yeosu plant of Kumho Mitsui Chemicals (KMCI),

Mitsui Chemicals' Korean MDI joint venture. Despite dealing in

commoditized products, KMCI generates high profitability,

Mitsui Chemicals (4183.T, 4183 JT)

supported by an expanding portfolio of high-performance Petrochemical Majors | Japan

products and robust cost-competitiveness. Stock Rating Overweight

Industry View Attractive

Reaffirming source of KMCI’s competitiveness: On July 6, we visited the Yeosu Price target ¥2,900

Shr price, close (Jul 6, 2026) ¥2,192

plant of Kumho Mitsui Chemicals Inc. (KMCI), Mitsui Chemicals' Korean MDI joint Mkt cap, curr, basic (bn) ¥825.2

venture. We toured the production facilities (including the R&D center) and talked Avg daily trading value (bn) ¥5.5

with management. Despite dealing in commoditized products, KMCI generates Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

exceptionally high profitability, with a net profit margin of 11% in FY25. We found Revenue, net (¥bn) 1,668.8 1,882.0 1,921.0 1,983.0

Operating profit (¥bn)* 73.8 95.0 132.0 154.0

the visit highly informative in enhancing our understanding of the factors Recurring profit (¥bn)* - - - -

Net income (¥bn)* 34.4 55.0 84.0 100.0