'PBR 0.6 Undervalued' UID Seeks Corporate Value Reassessment Through M&A, ESS, and Chemical Materials Expansion

KOSDAQ-listed company UID is taking active steps to enhance its corporate value. The company is not receiving a fair corporate valuation due to its low valuation. UID is pursuing a re-evaluation of its corporate value by leveraging more than 30 years of accumulated expertise in display material technologies, as well as expanding into new businesses such as M&A, ESS, and chemical materials.

Since its establishment in 1990, UID has built its competitiveness in the optical materials sector for over 30 years. In its main business area of ITO coating, it possesses global-level technological capabilities and supplies related products for LG Display’s IPS panels used in notebooks and tablet PCs.

The company owns the largest eighth-generation coating equipment in Korea and, based on its proprietary thin-film design technology, has developed the ability to increase brightness by about 10% and improve side visibility by more than two times compared to existing panels.

The DM division, operated at the Ochang plant, also serves as a stable revenue base. Utilizing its lamination technology, UID applies its products to Samsung Electronics’ outdoor signage (OHF), home appliance panels, and enclosure development for LG Electronics.

Additionally, UID has established an integrated production system that connects etching (slimming) to coating by internalizing the etching process through its subsidiary GD. Industry experts say that the fact that a company with such technological capabilities and production facilities remains at a market capitalization level of 15 billion won is a sign that the market is not fully reflecting its intrinsic corporate value.

UID is accelerating business diversification to build a foundation for future growth, moving beyond its existing display-centered business structure. The company’s core strategies include three new businesses: automotive materials, ESS, and chemical materials.

First, UID is in the final stages of acquiring a lightweight electric vehicle component materials company. The target company specializes in polypropylene (PP) materials for automotive interiors and currently records annual sales of over 10 billion won with an operating margin of around 7 to 8%. As the importance of lightweighting vehicles to secure driving range in the electric vehicle market increases, the expansion of PP material applications is expected to drive growth. UID aims for this business to achieve annual growth of 20% after the acquisition.

The company is also stepping up its expansion into the ESS business. In December of last year, UID acquired BSS, a company specializing in ESS containers (enclosures).

BSS recorded sales of 29.2 billion won in 2023, and it has experience and technological capabilities in supplying customized ESS containers to domestic battery manufacturers. However, as BSS had undergone a rehabilitation process due to liquidity problems, UID has been working to normalize operations after the acquisition and expects to accelerate business expansion in the second half of the year.

UID is also preparing to enter the chemical materials business. The company plans to use subsidiary GD’s capabilities in handling hazardous chemicals such as hydrofluoric acid to supply high-value-added materials for semiconductors and etching processes. Although the business is still in its early stages, UID is reviewing ways to expand the business model to supply its own products to the market in the future.

Furthermore, UID plans to strengthen market communication and actively raise awareness of its corporate value through enhanced IR activities, addressing its previously insufficient engagement. The company explained that the recent tightening of KOSDAQ regulations has actually served as an opportunity to improve its corporate structure.

Park Kibum, Vice President of UID, stated, “In the past, we responded somewhat complacently, but now that time is of the essence, we will overcome crises quickly,” adding, “Along with pursuing new businesses, we will strengthen IR activities and actively communicate with shareholders.”

This content was produced with the assistance of AI translation services.