Union Materials: Q1 2026 Consolidated Revenue Down, Operating Profit Slightly Down, Net Profit Up
Q1 2026 consolidated revenue: 24.8 billion won (down 9.8% YoY from 27.5 billion), operating profit: 1.1 billion won (down 21.4% YoY from 1.4 billion), net profit: 0.5 billion won (up 45.8% YoY from 0.3 billion)
Credit rating maintained at BBB- (NICE D&B, 2026.04.30); weak financial structure (debt ratio 653%, equity 18.7 billion, debt 122.1 billion)
Standalone revenue: 24.7 billion won, operating profit: 0.4 billion won, net profit: 0.4 billion won (operating profit down YoY)
Vietnamese subsidiary Union Materials Vietnam recorded a net loss of 1.3 billion won this quarter, accumulated losses continue
Union Tooltek (China) posted a net profit of 0.6 billion won, healthy
Continued business with key customers like Bosch; estimated market share: ferrite 7-10%, ceramic inserts 3%
No dividend declared (no share buyback or cancellation plans)
Articles of Incorporation amended: changed 'outside director' to 'independent director', raised independent director requirement (from 1/4 to 1/3 of board)
Effective tax rate estimated at 65.74% (consolidated), high