[Click eStock] "Nongshim, Strong Domestic Subsidiary Sales Performance... Expectation of Corporate Value Increase"

NH Investment & Securities maintained its buy rating and target price of 560,000 KRW for Nongshim on the 15th, stating that although overseas subsidiary sales performance temporarily slowed, the domestic subsidiary's sales performance was strong enough to offset this, and profitability indicators also improved.

Joo Young-hoon, a researcher at NH Investment & Securities, explained, "As demand for global ramen continues to steadily increase, overseas subsidiary performance, centered on the United States, is expected to return to growth from the fourth quarter. The high proportion of overseas sales serves as the basis for a valuation premium, so continuous corporate value growth is anticipated."

Nongshim's consolidated sales for the third quarter of this year reached 855.9 billion KRW, a 5% increase compared to the same period last year, and operating profit rose 104% to 55.7 billion KRW, exceeding market expectations and NH Investment & Securities' estimates.

Domestic sales amounted to 620.4 billion KRW, up 9% year-on-year. Despite some product price reductions, demand increased strongly, analyzed as benefiting from higher dining-out prices. Although there is a negative impact from fewer operating days in the fourth quarter, growth is expected to continue through new product launches.

Overseas subsidiary sales were 235.5 billion KRW, down 3% year-on-year. Researcher Joo stated, "Growth trends continued in local currency terms, but there was a negative impact from exchange rates. However, Vietnam and Australia still maintain double-digit sales growth, and the United States, which accounts for the largest sales proportion, is also expected to resume growth from the fourth quarter, so there is no need for excessive concern."

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