[Click eStock] "Samyang Foods, Overseas Momentum Expansion Phase... Target Price Up"

Target Price Raised by 19% Compared to Previous Estimate

Shinhan Investment Corp. raised the target price for Samyang Foods from 720,000 KRW to 860,000 KRW on the 23rd, anticipating continued high growth driven by expanding overseas momentum. The investment rating was maintained at 'Buy.'

Researcher Sanghoon Cho of Shinhan Investment Corp. explained, "We raised the target price by 19% compared to the previous estimate, reflecting upward revisions in export performance estimates due to improved regional mix and a stronger dollar." He added, "Although there is valuation pressure from the recent sharp rise in stock price, it is important to focus on the sustained high growth potential at the early stage of expanding overseas momentum."

He evaluated that the company holds both short-term and long-term momentum. Researcher Cho said, "Despite the recent rapid surge, there is still sufficient upside." He continued, "In the short term, the completion of the Miryang Plant 2 by the end of May next year, and in the long term, the completion of the local factory in China by the end of January 2027 are expected to accelerate external growth."

The establishment of a local factory in China is expected to increase market share. Researcher Cho analyzed, "By having local production facilities, quick responses will be possible in the Chinese market, which is the largest single country in terms of weight and high growth." He added, "Additionally, by reducing labor costs, tariffs, and logistics expenses, reinvestment in products and marketing is expected to increase market share." He further noted, "After 2027, the domestic Miryang plant will be able to focus solely on Western markets, accelerating global penetration."

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