[Click eStock] "Nongshim, Expanding Overseas Market Awareness... Re-Rating Factor"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment maintained a 'Buy' rating on Nongshim on the 23rd, stating that the stock has shown a Re-Rating factor due to increased overseas recognition, and raised the target price by 16.28% from the previous 430,000 KRW to 500,000 KRW.

Sim Eunju, a researcher at Hana Financial Investment, analyzed, "Since 2014, exports have expanded mainly to China, but currently global recognition is spreading centered on the Americas," adding, "The share of the United States in major processed food exports has sharply increased from 11.3% in 2014 to 16.4% in the first half of this year."

The United States is evaluated as an important processed food export market, comparable to China. In particular, it is understood that the repurchase rate among local Americans is significantly rising as ramen rapidly emerges as a meal substitute. The New York Times selected 'Shin Ramyun Black' as the most delicious ramen in the world, indicating favorable local evaluations.

Nongshim's consolidated sales and operating profit this year are estimated to increase by 10.4% and 98.9%, respectively, compared to the previous year. The profit strength, which had been declining since 2015, is expected to make a quantum leap this year and achieve record-high performance.

Researcher Sim explained, "The profit strength in 2015, when Nongshim's stock price exceeded 500,000 KRW, was only 120 billion KRW," and added, "This year's performance improvement is not considered a surprise result caused by COVID-19."

He emphasized, "Attention should be paid to the overall profit strength leveling up based on increased overseas recognition," and added, "The domestic business environment is also becoming more favorable compared to the past as cutthroat competition is easing."

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