[Stock in Focus] Samyang Foods Jumps Over 5% on Treasury Share Sale Plan

On November 20, Samyang Foods is showing strong performance. This comes as the company decided to expand its factory in China and sell all of its treasury shares.

As of 9:39 a.m. on this day, Samyang Foods is trading at 1,453,000 won, up 78,000 won (5.67%) from the previous trading day.

This is attributed to the correction of its investment plan for the Chinese factory and the announcement of the treasury share disposal plan the previous day, which have drawn significant attention from investors.

Regarding the Chinese factory, Samyang Foods has added two new production lines, increasing the number from six to eight. As a result, the expected production capacity (CAPA) in China is projected to expand by 37.8%, from 820 million servings to 1.13 billion servings. Once the factory expansion in China is completed in January 2027, the total CAPA is expected to reach 3.76 billion servings.

In addition, Samyang Foods has decided to sell all of its treasury shares, amounting to approximately 102.7 billion won.

Han Yoojeong, a researcher at Hanwha Investment & Securities, explained, "It is difficult to view this disposal as being for the purpose of financial stabilization," adding, "It is highly likely that the company is securing funds in anticipation of additional factory investments to respond to increasing global demand."

Han further stated, "Although the new factories, including those in China, are scheduled to begin operation from 2027, overseas sales are likely to show an early upward trend even before that. This is because, with a global demand base already established, the initial stabilization period for new factories could be shortened when they begin operation. We maintain our top pick recommendation within the sector."

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