[Market Focus] Unid Rises on Expectations of Valuation Reassessment

Unid is on an upward trend. This appears to be influenced by securities firms' analyses that anticipate a revaluation of its valuation due to improvements in its return on equity (ROE).

As of 10:04 a.m. on October 10, Unid was trading at 72,800 won, up 1,600 won (2.25%) from the previous trading day.

Cho Hyunryul, a researcher at Samsung Securities, stated, "Unid's ROE recovered from a low of 1.8% in 2023 to 8.0% in 2024, and this year it is expected to be slightly adjusted to 7.7%. The ROE in 2026 is projected to improve further to 9.3% compared to this year, which is attributed to the effect of new expansions resulting from the operation of its plant in China."

He added, "Given the achievable ROE level in 2026, the company's valuation remains significantly lower than its competitors, which means its undervaluation appeal persists."

He also assessed that Unid has already secured capabilities such as inorganic chemical production and global leadership, which are essential for the long-term competitiveness of the Korean chemical industry. He said, "Since Unid does not use naphtha, a petroleum-based raw material, the company is free from the risk of oversupply of chemical products due to increased demand for electric vehicles. Furthermore, Unid is differentiated from traditional Korean petrochemical companies in that it is not affected by the structural changes in future energy demand."

He further emphasized, "Unid holds the world's largest production capacity in the potassium hydroxide market, and the threat from new entrants is also considered to be rather limited."