[Featured Stock] Unid Continues Earnings Growth Trend, Up 5.05%

The stock price of Unid, a chemical company expected to see its operating profit double compared to the previous quarter in the first quarter of this year, is on the rise. The profit growth trend is expected to continue into the second quarter.

As of 9:49 a.m. on the 14th, Unid was trading at 81,200 KRW, up 3,900 KRW (5.05%) from the previous trading day.

On the same day, IBK Investment & Securities said, "Operating profit, which was 12 billion KRW in the fourth quarter of last year, is expected to reach 25 billion KRW in the first quarter of this year," and raised the target price from 100,000 KRW to 115,000 KRW. The investment rating was maintained as a buy.

Kim Dong-wook, a researcher at IBK Investment & Securities, stated, "The Yichang plant in China started operating at 100% capacity, turning profitable since last month," and added, "With a favorable exchange rate effect for export companies continuing, and increased demand for agricultural use and India, the domestic chemical sector's operating rate rose from 73% in the previous quarter to 85% in the first quarter."

Unid's Chinese subsidiary's industrial potassium prices are also expected to improve further. While global demand for potassium chloride is increasing, exports from major exporting countries such as Belarus are declining. Researcher Kim explained, "Kanpotex, the world's largest potassium chloride supplier (with a supply capacity of about 13 million tons), completed contracts for all sales for the first half of this year in early last month," and added, "In China, potassium chloride prices have risen more than 26% compared to the beginning of the year due to increased demand for agricultural fertilizers."

This year's logistics costs are expected to decrease by about 40 to 50 billion KRW compared to last year, positively impacting performance improvement. Researcher Kim said, "With the introduction of new ships, the withdrawal of the US port strike, and tariffs imposed between the US and China, the Shanghai Containerized Freight Index (SCFI) has dropped more than 60% from its previous peak in July last year."