Fact Summary
Union (000910), founded in 1964, is a white cement producer operating a cement manufacturing division and an environmental machinery division, and consolidates its KOSDAQ-listed subsidiary Union Materials (047400, 40.00% stake), which produces ceramic component materials (ferrite magnets). Per the 2025 business report, consolidated revenue was 2,024.0억원 and operating profit was 55.0억원, turning profitable from -114.6억원 the prior year; H1 2026 (cumulative) revenue was 992.4억원 and operating profit was 4.9억원. On 2026-03-03, Chairman Lee Gun-yeong, the largest shareholder, transferred largest-shareholder status to special-relationship party President Lee Woo-seon via a gift of 1.4 million shares (8.97%p) (the combined special-relationship-party stake of 39.63% remains unchanged). As of the analysis base date (2026-08-18), the closing price was 2,900원 and market capitalization was 452.74억원.
Context Note
H1 2026 cumulative net income (432.1억원) is approximately 88 times larger than operating profit (4.9억원), suggesting a large non-operating gain or loss occurred; however, the specific cause has not been confirmed, as the original text of the semiannual report has not been cross-checked. Over the same period, total assets grew from 3,333.9억원 at end-2025 to 3,960.7억원 at end-H1-2026, and total equity grew from 1,295.5억원 to 1,685.1억원, consistent in direction with the increase in net income.
Business Overview
Union began producing white cement (white Portland cement) in Korea for the first time in 1964 and listed on the KOSPI market in 1996. It directly operates a cement manufacturing division (white cement, alumina cement, specialty cement) and an environmental machinery division (dewatering equipment and other pollution-control equipment), and consolidates its ceramic component materials (ferrite magnet) business through its KOSDAQ-listed subsidiary Union Materials (047400, 40.00% stake).
- Cement Manufacturing Division — white cement, alumina cement, specialty cement (for refractories and binders)
- Environmental Machinery Division — dewatering equipment and other pollution-control equipment
- Ceramic Component Materials Division (via subsidiary Union Materials) — ferrite magnets, for automotive electronic components and home-appliance motors
Consolidated subsidiaries comprise six companies: Union Materials, Union Materials Vietnam, Union Tooltech Tools, Yunong Agricultural Cooperative, Union Resources, and Daekwang Sojae (summarized from ThinkPool stock information; base date unclear — requires cross-checking against primary disclosures).
5-Year Financial Trend (Consolidated)
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 | H1 2026 (Cumulative) |
|---|---|---|---|---|---|---|
| Operating Margin | 2.4% | 1.2% | -0.9% | -5.3% | 2.7% | 0.5% |
| Net Margin | 4.8% | -3.9% | -1.1% | -31.6% | 12.6% | 43.5% |
| Debt Ratio | 99.4% | 115.5% | 117.4% | 200.6% | 157.3% | 135.0% |
Between 2021 and 2025, operating profit alternated between profit and loss twice (profitable in 2021-2022 → loss-making in 2023-2024 → turned profitable in 2025), and net income showed large divergences from operating profit in 2024 (-689.0억원) and H1 2026 (+432.1억원). The specific causes for both periods have not been obtained.
Valuation (Calculated)
Based on total equity at the end of H1 2026, PBR declines further to approximately 0.27x. The PER derived by annualizing H1 2026 net income (approximately 0.52x) is presented for reference only and is not used as an authoritative metric, since the surge in H1 net income may reflect a one-off gain whose cause has not been obtained.
Competitive Landscape
Union is reportedly the only white cement producer in Korea (web research, primary source not cross-checked), indicating a niche market in the cement segment with effectively no direct domestic competitors. In the ceramic component materials (ferrite magnet) segment, the landscape is understood to be an oligopolistic global market with Japan's TDK and Hitachi (now Proterial) cited as major competitors, though quantitative market-share comparison data has not been obtained.
Governance and Capital Structure
| Date | Event |
|---|---|
| 2026-03-03 | Chairman Lee Gun-yeong gifted 1,400,000 shares (8.97%p) to President Lee Woo-seon, transferring largest-shareholder status |
| 2026-06-01 | Lee Gun-yeong transitioned from registered officer to non-registered officer, disposed of an additional 50,000 shares |
| 2026-07-03 | The pledge on Lee Woo-seon's held shares was adjusted from 4,200,000 shares (26.90%) to 5,600,000 shares (35.87%) |
The combined stake of the special-relationship-party group remains at 39.63%, with no substantive change since June 2025, though the representative name has shifted from Chairman to President. Union holds a 40.00% stake in Union Materials (047400), which is consolidated, and Union Materials holds Union Materials Vietnam and Union Tooltech Tools each as 100% subsidiaries.
Supply-Demand Trends (Estimated, KRX Raw Data Not Cross-Checked)
During the 2026-07-20 to 08-18 period, foreign investors generally showed sustained net selling while individual investors responded with net buying, according to a third-party source (alphasquare.co.kr). However, these figures have not been cross-checked against official KRX raw data and are presented for reference only.
Macro Environment
| Factor | Current Value (Base Date) | Transmission Channel |
|---|---|---|
| KRW/USD Exchange Rate | 1,413.0원(2026-08-18, -5.3원 from prior day) | Won strength puts downward pressure on Union Materials' export profitability, while also improving the domestic price competitiveness of low-cost imported white cement, exerting downward pressure on cement-segment selling prices as well |
| International Rare Earth (Dysprosium, etc.) Prices | 2,250달러 per kg for dysprosium (8x versus 2025-04, as of 2026-07-22~23) | China's export controls have driven up rare-earth (neodymium) magnet prices, creating a channel that induces substitute demand for relatively cheaper ferrite magnets |
| Domestic Construction Cycle and Cement Demand | 2026 cement demand forecast at 3,610만톤 | Delayed recovery in housing starts and pre-sales leads to reduced cement shipment volumes, exerting downward pressure on revenue |
Risk Factors
- The debt ratio remained elevated at approximately 157.3% at end-2025, having risen to as high as approximately 200.6% at end-2024.
- The specific cause of the -689.0억원 net loss per the 2024 business report has not been obtained.
- H1 2026 net income of 432.1억원 is approximately 88 times operating profit, leaving the nature of the large non-operating gain or loss (whether one-off) unclear.
- Operating profit has alternated between profit and loss over the past five years, indicating high earnings volatility.
- The cement segment is linked to the domestic construction cycle and the ceramic component materials segment to downstream automotive and home-appliance industry demand, resulting in cyclical sensitivity.
News Timeline
| Date | Content |
|---|---|
| 2026-03-03 | Largest shareholder Lee Gun-yeong gifted 1.4 million shares (8.97%p) to special-relationship party Lee Woo-seon; combined special-relationship-party stake maintained at 39.63% |
| 2026-03-12 | Foreign media report on US rare-earth stockpiling boosted the domestic rare-earth (ferrite substitute material) theme; Union traded up 2.56% from the prior day at 4,400원 |
| 2026-05-13 | Ahead of the US-China summit, expectations for rare-earth supply chain negotiations lifted Union 3.64% to close at 4,415원, while Union Materials closed up 8.50% |
| 2026-07-30 | Union share price at 2,535원 (third-party price snapshot, below the H1 high) |
No company-specific news related to Union was identified for the 2026-08-04 to 08-18 period (not obtained).
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Fact Highlights
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Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · NASDAQ · DART · SEC EDGAR