South Korea TAK & STEMCO Visits: Strong Momentum

Research evidence excerpt

South Korea TAK & STEMCO Visits: Strong Momentum

Update

July 7, 2026 10:30 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MToray Industries (3402) | Japan Takato Watabe

Equity Analyst

South Korea TAK & STEMCO Takato.Watabe@morganstanleymufg.comRyoichi Watanabe +81 3 6836-5436

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

Visits: Strong Momentum Kayoko Shoji

Research Associate

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

We visited diversified chemical subsidiary TAK & electronic Kano Fujita

components subsidiary STEMCO. MLCC PET film & thin-film ID- Research Associate

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

Coils look poised for strong medium-term growth.

Aggressive capex: On Jul 7, we had the opportunity to visit Gumi Plant, the core

plant of Toray's South Korean subsidiary Toray Advanced Materials Korea (TAK),

where we interviewed TAK's top management and toured the water treatment

membrane production facility, as well as visit electronic components subsidiary Toray Industries (3402.T, 3402 JT)

STEMCO, interview top management there and tour the COF production line. Both Top Pick

entities continue to invest aggressively, and our visit highlighted strong momentum. Fine Chemicals | Japan

Stock Rating Overweight

TAK overview & business: In 1999, Toray established Toray Saehan in a JV with Industry View In-Line

South Korea's Saehan Industries (formerly of Samsung Group). Toray then made it a Price target ¥1,600

Up/downside to price target (%) 37

wholly-owned subsidiary in 2008, and renamed it TAK in 2010. TAK's capital stands Shr price, close (Jul 7, 2026) ¥1,171

at KRW944.6bn (as at Mar-end), and it employs ~4,100 people. In F3/26, it recorded Mkt cap, curr, basic (bn) ¥1,704.4

Div yld (03/27e) (%) 2.2

consol.