[Click eStock] "Samyang Foods, Buying Opportunity During Stock Price Adjustment"

Daishin Securities analyzed on the 24th that the export slump of Samyang Foods in August is temporary and significant external growth is expected in the second half of next year. Accordingly, they maintained the investment opinion as 'Buy' and the target price at 750,000 KRW.

Jung Hansol, a researcher at Daishin Securities, explained in the report, "Although there was a stock price adjustment due to the weak ramen export data in August and the decline of the KRW-USD exchange rate, ramen export growth is recovering in September," adding, "Exports to China and the United States remain solid, and exports to Europe have increased significantly, with plans to establish a Netherlands corporation within the year."

He also judged that the recent stock price adjustment has lowered valuation pressure, making each adjustment a buying opportunity.

Researcher Jung said, "The Miryang Plant 2 is expected to ramp up its initial operating rate faster than Plant 1, making significant external growth possible again from the second half of next year."

He forecasted consolidated sales of 426.9 billion KRW and operating profit of 87 billion KRW for the third quarter. Due to production capacity (CAPA) shortages, the company is focusing on overseas regions with high average selling prices (ASP), and domestic noodle and snack sales are expected to be similar to the previous quarter. Researcher Jung predicted, "Overseas sales are limited by the absolute volume of producible goods. The KRW/USD exchange rate has weakened since August, limiting quarter-on-quarter growth, but annual growth is expected to be 40.5%."

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