[Click e-Stock] "Unid: Industry in Spring, But Stock Price Still in Winter... Target Price Raised"

On May 21, DS Investment & Securities analyzed that "Unid's stock price has remained sluggish despite improvements in industry conditions."

Kim Suhyeon, a researcher at DS Investment & Securities, stated, "Even after applying an 80% discount to the value of its holdings, the calculated target price is still higher than the current level," and raised the target price to 110,000 won. The investment opinion was maintained as 'Buy.'

In the first quarter of this year, Unid recorded consolidated sales of 322.5 billion won and operating profit of 28.7 billion won. Compared to the same period last year, these figures increased by 27% and 4%, respectively. Compared to the previous quarter, they rose by 17% and 130%, surpassing market expectations. The operating margin was 8.9%.

In particular, the domestic subsidiary led performance growth, posting sales of 154.3 billion won and operating profit of 18.7 billion won, up 4.4% and 10% year-on-year, respectively. The operating margin was 12%. Kim explained, "Profitability improved significantly due to the recovery in operating rates and the easing of freight cost burdens." He also noted, "The strong dollar effect and increased sales volume driven by recovering demand in India and Europe also contributed."

The Chinese subsidiary recorded sales of 172.1 billion won and operating profit of 9.2 billion won during the same period. Sales increased by 56.2% year-on-year, while operating profit decreased by 8.9% compared to the same period last year but increased by 44% from the previous quarter. The operating rate of the new UHC plant in China was at an early stage and remained low at 88%, but growth continued as potassium sales volume increased.

The company is expected to continue its performance improvement in the second quarter. Kim forecast, "With continued strong demand from India and Europe, the operating rate in the second quarter is expected to reach 85-90%. A decrease in maritime freight costs due to reduced global cargo volume is also anticipated." He added, "For the Chinese subsidiary, an increase in sales volume is expected as the new UHC operating rate improves. If UHC operates normally, the second quarter operating rate is projected to reach 95%, up from 88% in the first quarter."