"Heading for 2 Million Won": The Company the Securities Industry Says Not to Doubt [Weekend Money]

Target Price for Samyang Foods Raised by Multiple Securities Firms

Hanwha Investment & Securities and Others Set Target at 2 Million Won

"There is no need to doubt Buldak." "All the conditions for a stock price rebound have been met."

Positive outlooks are pouring in from the securities sector regarding Samyang Foods, which is leveraging its Buldak brand. In an industry where it is structurally difficult to generate high margins, the company has consistently maintained an operating margin exceeding 20%, and its robust overseas growth momentum is being confirmed, driven by factors such as an increase in utilization rates.

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According to the securities industry on May 16, Hanwha Investment & Securities recently raised its target price for Samyang Foods from 1.9 million won to 2 million won. As of May 14, the 2 million won per share target price is the highest among major securities firms. Previously, Eugene Investment & Securities and Yuanta Securities also suggested the same figure.

Yoojeong Han, a researcher at Hanwha Investment & Securities, said, "The fact that Samyang Foods has been consistently achieving an operating margin of more than 20% is clear evidence of the still very strong global demand for the Buldak brand," and explained that "further growth is expected as supply bottlenecks ease," which is the basis for the target price increase.

Samyang Foods recorded consolidated sales of 714.4 billion won in the first quarter, up 35.0% year-on-year. Operating profit also rose 32.2% to 177.1 billion won, surpassing the consensus estimate of 162.8 billion won. This year, its annual performance is projected to reach sales of 3 trillion won and operating profit of 708.5 billion won, representing increases of 27.7% and 35.2%, respectively, compared to the previous year.

Researcher Han emphasized, "Since March, including the Miryang Plant 2, production hours have been expanded, and production efficiency is expected to improve throughout the year. As a result, record-high quarterly sales are expected each quarter." She added, "While the company is simultaneously expanding its regional presence and supply capacity based on its global mega-brand, its 12-month forward price-to-earnings ratio (PER) is only 16.3 times."

On the same day, Hyundai Motor Securities also raised its target price for Samyang Foods from 1.8 million won to 1.9 million won. Heeji Ha, a researcher at Hyundai Motor Securities, stated, "There is no need to doubt Buldak," and highlighted, "Global demand remains strong; expectations are high for growth through inventory recovery in the U.S. and full-scale marketing expansion in the second quarter, visibility is increasing for export recovery to China, and growth in Europe is accelerating." She recommended maintaining a buy strategy, noting, "Samyang Foods still has the most pronounced overseas growth momentum in the food & beverage industry."

Daol Investment & Securities also raised its target price from 1.7 million won to 1.9 million won, assessing that all conditions for a stock price rebound have been met. Dayeon Lee, a researcher at Daol Investment & Securities, commented, "Samyang Foods' stock price has shown strong rebounds whenever solid demand was confirmed, expectations for increased exports driven by higher utilization rates grew, and earnings estimates were raised." She noted, "Currently, all three of these conditions are being met."

KB Securities, which set a target price of 1.95 million won, maintained Samyang Foods as its top pick in the food & beverage industry. Eunae Ryu, a researcher at KB Securities, analyzed, "First-quarter results exceeded market expectations thanks to sales surprises in China and Europe, and expectations for second-quarter and annual results are also expected to rise on the back of stronger sales fundamentals." She added, "With demand still outstripping supply, the impact of the Iran situation is also limited."

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