[Feature Stock] Unid Rises 6.95% on Expectations of Expanded U.S. IRA Carbon Capture Benefits

Unid's stock price is showing strength on June 19. The previous day, the U.S. Senate released a draft of the Inflation Reduction Act (IRA) tax reform bill, which included provisions to expand benefits related to carbon capture tax credits.

As of 10:35 a.m. on June 19, Unid was trading at 90,800 won, up 5,900 won (6.95%) from the previous trading day.

Hana Securities maintained its "Buy" investment rating and target price of 130,000 won for Unid on this day. Yoon Jaesung, a researcher at Hana Securities, stated, "While the draft released yesterday reduced tax benefits for electric vehicles, solar power, and wind power, it actually expanded benefits for the carbon capture tax credit under Section 45Q. The sunset date remains the same as the 2032 proposed by the Biden administration, and unlike solar and wind, there are no third-party transfer restrictions."

He added, "Moreover, the tax credit amount for EOR (Enhanced Oil Recovery) technology will be further increased. The plan is to raise the tax credit for EOR to the same level as that for underground storage."

This is interpreted as the result of lobbying by supermajors, who are highly motivated to expand carbon capture technology. Since carbon capture is a core technology for meeting surging power demand, expanding U.S. oil and gas production, and supporting energy exports, the Trump administration is also positive about related technologies.

Researcher Yoon stated, "Unid's operating profit for the second quarter is expected to reach 39.1 billion won, up 12% year-on-year. With domestic and overseas capacity expansions, this year's operating profit is projected to reach 139.8 billion won, a 46% increase from last year, approaching an all-time high."

He also added, "Currently, the stock is absolutely undervalued, with a price-to-book ratio (PBR) of 0.53 and a price-to-earnings ratio (PER) of 5.61. Considering the potassium market cycle shift and the Trump administration's favorable policies toward carbon capture, a revaluation of the company's valuation is inevitable."