Corporate Logo(source: unid.co.kr)
UNID (014830) delivered stronger-than-expected first-quarter results, prompting Hyundai Motor Securities to raise its target price for the stock from 105,000 KRW to 120,000 KRW.
On April 24, analyst Kang Dong-jin of Hyundai Motor Securities commented, “The company posted a significant earnings surprise, beating both our projections and the market consensus. We expect further improvement in the second quarter, driven by seasonal strength and increased utilization rates at the company’s plant in China.”
For the first quarter, UNID reported revenue of 322.5 billion KRW and operating profit of 28.7 billion KRW, up 26.6% and 4.2% year-on-year, respectively. Notably, operating profit surged 130.2% quarter-on-quarter, significantly exceeding consensus estimates.
The key driver behind the strong performance was the full-scale ramp-up of a new plant in Yichang, Hubei Province, China. The plant, which required an investment of approximately 230 billion KRW, began meaningfully contributing to both revenue and profit from the first quarter.
Firm pricing in the global potassium-based chemical market also supported earnings. “Mosaic, the world’s largest fertilizer producer, recently forecasted a potential potash shortage in the coming years,” said Kang. “We believe the strength in potassium chloride prices is likely to persist in the near term.”
He added, “With the expansion effect and tight supply-demand dynamics for potassium chloride in play, we expect volume and price momentum to continue for some time. The stock still trades in undervalued territory.”
*[KOSPI]UNID(014830) is a company that manufactures caustic potash(KOH), chlorine, medium-density fiberboard(MDF), and other basic inorganic chemical products essential to various industries, including caustic potash and potassium carbonate(K₂CO₃). The market capitalization is 588 billion won(as of April 23, 2025, closing price).
UNID (014830) delivered stronger-than-expected first-quarter results, prompting Hyundai Motor Securities to raise its target price for the stock from 105,000 KRW to 120,000 KRW.
On April 24, analyst Kang Dong-jin of Hyundai Motor Securities commented, “The company posted a significant earnings surprise, beating both our projections and the market consensus. We expect further improvement in the second quarter, driven by seasonal strength and increased utilization rates at the company’s plant in China.”
For the first quarter, UNID reported revenue of 322.5 billion KRW and operating profit of 28.7 billion KRW, up 26.6% and 4.2% year-on-year, respectively. Notably, operating profit surged 130.2% quarter-on-quarter, significantly exceeding consensus estimates.
The key driver behind the strong performance was the full-scale ramp-up of a new plant in Yichang, Hubei Province, China. The plant, which required an investment of approximately 230 billion KRW, began meaningfully contributing to both revenue and profit from the first quarter.
Firm pricing in the global potassium-based chemical market also supported earnings. “Mosaic, the world’s largest fertilizer producer, recently forecasted a potential potash shortage in the coming years,” said Kang. “We believe the strength in potassium chloride prices is likely to persist in the near term.”
He added, “With the expansion effect and tight supply-demand dynamics for potassium chloride in play, we expect volume and price momentum to continue for some time. The stock still trades in undervalued territory.”
*[KOSPI]UNID(014830) is a company that manufactures caustic potash(KOH), chlorine, medium-density fiberboard(MDF), and other basic inorganic chemical products essential to various industries, including caustic potash and potassium carbonate(K₂CO₃). The market capitalization is 588 billion won(as of April 23, 2025, closing price).