[Market Focus] Samyang Foods Rises for Third Day on Expectations for Miryang No. 2 Plant Operation...Hits Record High
Samyang Foods hit an intraday record high as its stock continued to rally on expectations of performance growth following the launch of its second factory in Miryang.
As of 9:30 a.m. on July 9, Samyang Foods was trading at 1,448,000 won on the Korea Exchange, up 12,000 won (0.84%) from the previous day. During the session, the price touched 1,460,000 won, setting a new all-time high.
Expectations for performance growth driven by the operation of the Miryang No. 2 plant are cited as a key factor behind the stock's rise. The Miryang No. 2 plant completed construction last month and began full-scale operations this month. Kang Eunji, a researcher at Korea Investment & Securities, stated, "Buldak Bokkeum Myeon produced at the Miryang No. 2 plant will be exported to the United States and Europe starting in the third quarter, driving performance growth. 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." Korea Investment & Securities raised its target price for Samyang Foods to 1,800,000 won, up 25.9% from the previous target.
Ryu Eunae, a researcher at KB Securities, also commented, "The additional production capacity is 830 million servings per year, which is 20% higher than the previously expected 690 million servings. This increase is due to the extension of daily operating hours from 20 to 22 hours." She added, "With expanded production capacity, shipments to major distributors such as Costco in the United States are expected to increase, and improved product mix is likely to boost margins." KB Securities raised its target price for Samyang Foods from 1,250,000 won to 1,500,000 won to reflect the additional capacity expansion.
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