"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 rebound are in place."

The securities industry is pouring out positive outlooks for Samyang Foods, led by its Buldak brand. The company continues to maintain an operating margin exceeding 20% in the food and beverage sector, where structurally high margins are difficult to achieve. Additionally, solid overseas growth momentum is being confirmed, driven by increased operating rates.

Since the game incident, companies have raised prices on 53 processed food items, including coffee, bread, frozen foods, and ramen, causing a crisis in 'table prices.' Many analysts believe that companies had been holding back price increases to cooperate with the government's price stabilization measures but raised product prices en masse during the government’s administrative vacuum period. The photo shows a ramen display at a large supermarket in Seoul on the 10th. 2025.06.10 Photo by [Photographer Name]

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. The target price of 2 million won per share is the highest among major securities firms as of May 14. Previously, Eugene Investment & Securities and Yuanta Securities also suggested the same figure.

Yoojeong Han, an analyst at Hanwha Investment & Securities, explained the upward revision, stating, "The fact that the company continues to achieve an operating margin exceeding 20% demonstrates that global demand for the Buldak brand remains very strong," adding, "Further growth is expected as supply bottlenecks ease."

Yonhap News Agency

Samyang Foods' consolidated sales in the first quarter reached 714.4 billion won, up 35.0% year-on-year. Operating profit also increased by 32.2% to 177.1 billion won, surpassing the market consensus of 162.8 billion won. This year, annual sales are projected at 3 trillion won and operating profit at 708.5 billion won, representing year-on-year increases of 27.7% and 35.2%, respectively.

The analyst commented, "Since March, including the Miryang Plant 2, operating hours have been expanded, and production efficiency is expected to improve throughout the year, so record-high quarterly sales are anticipated." She emphasized, "While regional expansion and supply capacity expansion are taking place simultaneously based on the global mega brand, the 12-month forward price-to-earnings ratio (PER) remains just 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, an analyst at Hyundai Motor Securities, remarked, "There is no need to doubt Buldak," noting, "With global demand remaining strong, we expect growth in the second quarter thanks to U.S. inventory recovery and full-scale marketing expansion, visible recovery in exports to China, and accelerating growth in Europe." She recommended maintaining a buy strategy, stating that the company still holds the clearest overseas growth momentum in the food and beverage sector.

Daol Investment & Securities also raised its target price from 1.7 million won to 1.9 million won, assessing that all the conditions for a stock rebound are in place. Dayeon Lee, an analyst at Daol Investment & Securities, stated, "Samyang Foods’ stock price has shown strong rebounds whenever robust demand was confirmed, expectations for export growth due to increased operating rate rose, and earnings estimates were revised upward," adding, "We are currently at the intersection of these three conditions."

KB Securities, which set a target price of 1.95 million won, continued to select Samyang Foods as its top pick in the food and beverage industry. Eunae Ryu, an analyst at KB Securities, noted, "First-quarter results exceeded market expectations thanks to sales surprises in China and Europe, and with the company’s enhanced sales strength, expectations for second-quarter and annual earnings will also rise." She diagnosed, "With demand still outpacing supply, the impact of the Iran situation is also limited."

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