Union Materials유니온머티리얼

Union Materials is trading at ₩830 after a steep one-year fall, with thin profits, high leverage and a regulatory warning filed in September.

Union Materials makes ferrite magnets and ceramic parts for automotive, appliance and industrial customers. On trailing twelve-month figures to H1 2026 it reports revenue of ₩99.6B, operating income of ₩5.1B and net income of ₩5.0B, a sharp recovery from large losses in 2023 and 2024. Liabilities are about 6.9 times equity and borrowings of ₩9.4B exceed cash of ₩5.1B.

What stands out

• Revenue fell 5.9% in 2025 to ₩101.9B, but operating income was ₩5.4B, a 5.3% operating margin, after losses of ₩16.5B in 2024.
• Trailing net income of ₩5.0B gives a P/E of about 6.9, below most listed peers in the data, but the data does not explain whether earnings are sustainable.
• The share price is down 60.4% over one year and sits far below its 52-week high of ₩2,260; the DCF fair value model gives a base of ₩1,892, bear ₩941 and bull ₩3,551.
• Foreign ownership fell from 3.6% to 3.2% over 60 days, and 20-day flows show net selling by foreign and retail investors.
• Filings include a September 29 Investment Caution Notice on possible designation as an administrative issue, plus a share consolidation decision and an extraordinary shareholders' meeting.

What to watch

• Whether the exchange confirms or lifts the Investment Caution Notice and whether any designation as an administrative issue follows.
• Outcome and terms of the share consolidation and the extraordinary shareholders' meeting results.
• Next half-year or annual results, and whether the company can keep operating margins positive while servicing ₩9.4B of borrowings.