[Click e-Stock] "Samyang Foods' Overseas Export Momentum to Continue... Target Price Raised"

On September 11, NH Investment & Securities raised its target price for Samyang Foods from 1.65 million won to 1.88 million won, citing sustained export momentum. The investment opinion was maintained as 'Buy'.

Ju Younghoon, a researcher at NH Investment & Securities, stated, "We have raised our target price by 14% compared to the previous figure, reflecting the revised estimate for controlling shareholders' net profit in 2026 and a change in the applied price-to-earnings ratio (PER) valuation from 24.5 times to 26.8 times." He explained, "The PER of 26.8 times is a figure that includes a 20% premium over the five-year average valuation of Japanese ramen companies Nissin and Toyo Suisan. Given that Samyang Foods' growth rate and profitability indicators are significantly higher than those of its competitors, we believe this valuation is fully justified."

The export momentum is expected to continue, driven by the global success of K-Pop Demon Hunters. Researcher Ju said, "As K-Pop Demon Hunters continues its global success, search volumes for ramen are also rising. The scene in which characters in the show take on a spicy challenge and eat a product reminiscent of Buldak Sauce demonstrates that Buldak Bokkeum Myeon has established itself as a cultural phenomenon. Based on this, the overseas export momentum is likely to persist."

Outstanding earnings growth within the industry is also expected to continue in the second half of the year. Researcher Ju estimated, "Samyang Foods' consolidated sales and operating profit for the third quarter are projected at 592.2 billion won and 134.5 billion won, up 35% and 54% year-on-year, respectively." He added, "The operation rate at the Miryang Plant No. 2 is currently at about 50% and rising rapidly, and with the new plant in China scheduled for completion in January 2027, we believe the company is well-positioned to meet increasing demand."

Concerns over rising costs are not significant. Researcher Ju commented, "Given that the company is in an aggressive expansion phase, a certain level of marketing expenditure will continue, but since sales indicators are rising rapidly, concerns over cost increases are not substantial." He further predicted, "Regarding the implementation of reciprocal tariffs by the United States, it is likely that the company can respond through price increases, and considering the high level of customer loyalty, the impact on demand will also be limited."

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