1. UNID’s Q2 2025 Performance: A Mixed Bag

UNID’s Q2 2025 results presented a mixed picture. While the chemical division showed stable growth, the overseas segment experienced a slowdown, compounded by rising raw material prices. The rise in KCl prices and intensified competition in overseas markets negatively impacted profitability.

2. China Market Investment: Opportunities and Risks

UNID is aggressively investing in the Chinese market, including expanding its potassium hydroxide plant. While this is a crucial strategy for securing long-term growth, it also carries risks such as oversupply and intensified price competition. The IR presentation is expected to address these concerns.

3. Key Issues from the IR Presentation

  • Overseas Business Growth Strategy: A clear explanation of the recovery strategy for the slowing overseas business segment and specific details on the performance of investments in the Chinese market are needed.
  • Responding to Exchange Rate and Interest Rate Volatility: UNID needs to present an effective risk management strategy to address exchange rate and interest rate fluctuations.
  • Addressing Raw Material Price Fluctuations: A clear plan for cost reduction and securing stable raw material procurement in the face of rising prices is crucial.
  • Investment and Financial Soundness: UNID must clearly articulate its plans to mitigate financial burdens from large-scale investments and enhance capital efficiency.

4. Investor Action Plan

Investors should carefully evaluate UNID’s growth potential and risks based on the information presented at the IR meeting. Closely examining the management’s Q&A session to assess the company’s strategic direction and execution capabilities is essential.