Namhae Chemical: Q1 Operating Profit Plunges, Turns to Loss on Surging Raw Material Costs

Q1 2026 (separate): revenue ₩491.4B (+12.3% YoY), operating profit ₩0.7B (-96.9% YoY), net loss ₩2.0B (vs profit in Q1 2025)
Consolidated: operating loss ₩0.12B, net loss ₩2.5B
Raw material prices surged: ammonia +50%, urea +75%, sulfur +133% YoY
Subsidiary NES Materials (semiconductor-grade sulfuric acid): equity method loss ₩1.05B (separate), reflected in consolidated loss
Cash & equivalents ₩96.0B (up from ₩37.5B at year-end 2025), debt ratio 65.7% (consolidated), 56.3% (separate)
FY2025 dividend: ₩90 per share (9.0% yield)
Litigation risks: 8 cases (wage claims etc.), total claim ~₩27.8B
Serious accident: Aug 2025 fatality at Yeosu plant, penalty ₩22.9M
Domestic fertilizer market share 40%, arable land declining, R&D in functional fertilizers
100% reliance on imported raw materials, holds derivatives for FX hedging