[Click eStock] "Samyang Foods Starts Miryang Plant 2 Operations... Target Price Set at 1.8 Million Won"

On July 9, Korea Investment & Securities raised its target price for Samyang Foods to 1.8 million won, which is 25.9% higher than its previous target. The company cited growth in the U.S. market as the reason.

Korea Investment & Securities projected Samyang Foods' second-quarter sales at 538.9 billion won and operating profit at 130.6 billion won. These figures represent year-on-year growth rates of 27% and 46%, respectively.

Kang Eunji, a researcher at Korea Investment & Securities, stated, "Samyang Foods' estimated average monthly ramen export value for April and May was $87.5 million." She explained, "Although the average KRW/USD exchange rate in the second quarter fell slightly to 1,404 won compared to the previous quarter, sales are expected to increase due to a rise in export volume."

Kang anticipated that Samyang Foods' performance would grow, driven by the impact of the company's second plant in Miryang, which began full-scale operations in July.

She said, "Buldak Bokkeum Myeon produced at the Miryang Plant 2 will be exported to the U.S. and Europe starting in the third quarter, leading to performance growth." She added, "In particular, since sales growth was limited in the first quarter due to supply shortages in some U.S. channels and in Europe, rapid growth is expected going forward."

Kang maintained Samyang Foods as her top pick in the food and beverage sector and raised the target price to 1.8 million won.

She explained, "Compared to the period from 2014 to 2016, when expectations for Nongshim's growth in the U.S. market were high, Samyang Foods' performance growth from 2024 to 2026 provides even stronger grounds for re-rating." She continued, "While Nongshim's average operating margin from 2014 to 2016 was only 4.3%, Samyang Foods' average operating margin from 2024 to 2026 is expected to be 22.8%, more than five times higher, and the pace of market share gains in the U.S. ramen market will also be faster."

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