[Click e Stocks] "Nongshim Expected to Meet 3Q Earnings Expectations"
On the 25th, Hanwha Investment & Securities maintained its 'Buy' investment rating and target price of 600,000 KRW for Nongshim, expecting the company's third-quarter earnings this year to meet market expectations.
Han Yoo-jung, a researcher at Hanwha Investment & Securities, stated, "Nongshim's consolidated sales for the third quarter are estimated to be 887.6 billion KRW, up 9.2% year-on-year, and operating profit is expected to increase by 86.6% to 50.9 billion KRW," adding, "These figures are expected to meet or slightly exceed previous estimates."
Despite the base effect from last year, strong sales of new products such as 'Meoktaekkang' and 'Shin Ramyun The Red' are expected to drive a 7.0% increase in domestic sales and a 20.8% increase in exports for the Korean subsidiary. Overseas, due to inventory depletion during the off-season, North American sales are projected to grow by 5.3%, and operating profit by 6.7%, while the Australian and Vietnamese subsidiaries are expected to achieve sales growth of 17.0% and 26.5%, respectively.
The base effect remains significant. The researcher noted, "The Korean ramen market was 2.5 trillion KRW last year, and the U.S. ramen market was 2.17 billion USD (approximately 2.898 trillion KRW), representing growth of 13.6% and 53.1%, respectively, compared to pre-pandemic levels," adding, "Due to the rapid market growth in a short period, the base effect will inevitably continue in the second half of this year."
Hot Picks Today
!["Rather Than Endure a 1.5 Million KRW Stipend, I'd Rather Earn 500 Million in the U.S." Top Talent from SNU and KAIST Are Leaving [Scientists Are Disappearing] ①](https://cwcontent.asiae.co.kr/asiaresize/93/2026051414165763158_1778735817.jpg)
"Rather Than Endure a 1.5 Million KRW Stipend, I'd Rather Earn 500 Million in the U.S." Top Talent from SNU and KAIST Are Leaving [Scientists Are Disappearing] ①
- [Breaking] Park Sukeun, Central Labor Relations Commission Chair: "Some Gaps Narrowed Between Samsung Electronics Labor and Management"
- Is This the Peak? As Others Hesitate..."The Answer Is Clear for Surviving the KOSPI 10,000 Era"
- "If That's the Case, Why Not Just Buy Stocks?" ETFs in Name Only, Now 'Semiconductor-Heavy' and a Playground for Short-Term Traders
- "No Cure Available, Spread Accelerates... Already 105 Dead, American Infected"
Despite this base effect, the diverse product portfolio and growth trend in the U.S. market are viewed positively. The researcher commented, "The domestic ramen market has shifted away from destructive price competition toward healthy competition focused on products, which is the most favorable change for Nongshim with its diverse product portfolio," and added, "Nongshim's brand share in the U.S. ramen market increased remarkably from 12.9% in 2013 to 25.5% last year. Beyond localization in the U.S., expansion into major mainstream channels and diversification of the brand portfolio are expected to sustain growth exceeding the market growth rate."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
