Hana Securities analyzed on the 25th that Unid is expected to benefit from artificial intelligence (AI) and the surge in power demand. The investment opinion was maintained as 'Buy,' and the target stock price was raised to 110,000 KRW.
Unid recorded an operating profit of 27.5 billion KRW in the first quarter, a 1619% increase compared to the same period last year. Jaesung Yoon, a researcher at Hana Securities, said, "The domestic corporation's operating profit improved every month," adding, "This was thanks to increased sales volume and the expansion of lagging spreads due to the downward stabilization of raw material prices." He also added, "The Chinese corporation's performance slightly decreased compared to the previous quarter due to reduced sales volume during the Lunar New Year low season and weak chlorine prices."
They expected performance improvement to continue into the second quarter. Hana Securities forecasted that Unid would record an operating profit of 36.2 billion KRW in the second quarter. Researcher Yoon emphasized, "The domestic corporation is entering the peak season, leading to increased sales volume and improved spreads due to lower electricity rates," and "The Chinese corporation is entering the seasonal peak, with increased sales volume and expected recovery of chlorine prices due to increased demand in upstream industries such as pesticides."
Researcher Yoon anticipated that Unid would benefit from AI, data centers, and the surge in power demand. He explained, "The surge in power demand triggered by AI and the resulting supply shortage risk are now pointed out as major factors threatening AI growth," adding, "Major power producers in the United States are emphasizing the need to build additional gas power plants as an alternative to ensure supply stability amid rapidly increasing demand."
He said, "As the role of gas expands for stable power procurement, the role of carbon capture to achieve decarbonization also becomes important," and "The full-scale blossoming of blue hydrogen and ammonia production through gas power + carbon capture and storage (CCS) and gas reforming + CCS is expected in the future."
He emphasized, "Unid is the global number one in the potassium-based market for carbon capture," and "It has a structure that can greatly benefit from the surge in AI, data centers, and power demand," adding, "This year is the first year of performance normalization, and full-scale valuation expansion is expected next year."
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