Kurita Water Industries Sustained Growth and CSV Model Penetration

Goldman Sachs reiterates a Buy rating for Kurita Water Industries, highlighting its transition to a value-driven 'market-in' strategy and high-margin CSV business model. The company aims for 18-20% profit margins in its electronics segment and 30% penetration of CSV services globally.

Key Takeaways

• 1.CFO Takehiro Nozue is leading a strategic shift from a 'product-out' to a 'market-in' mindset, drawing on his experience at competitors to address historical organizational weaknesses.
• 2.The company targets an 18-20% business profit margin for the electronics segment by leveraging cost improvements and a 'flow-and-stock' strategy.
• 3.General industry segment growth is driven by the expansion of CSV (Creating Shared Value) businesses, aiming for a 30% company-wide penetration rate.

Table of Contents

• GS Beyond the Cycle Series
• Kurita as seen by a former competitor, and its transformation over eight years
• Kurita's unique edge: reinforcement between electronics and general industry
• Toward management focused on capital efficiency
• Electronics business margin outlook
• Margin improvement measures for general industries and the significance of CSV business
• Price Target Risks and Methodology - Kurita Water Industries
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Price target and rating history chart(s)
• Regulatory disclosures
• Global product; distributing entities
• General disclosures

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