[Special Stock] Samyang Foods Rises on Target Price Upgrade

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Samyang Foods is showing an upward trend as expectations for overseas expansion grow and securities firms continuously raise their target stock prices.

At 9:20 a.m. on the 19th, Samyang Foods was trading at 736,000 KRW, up 4.10% (29,000 KRW) from the previous day.

Samyang Foods plans to invest approximately 200 billion KRW to expand six ramen production lines in Jiaxing, China, and operate the local factory from the first quarter of 2027. This decision comes from the judgment that the expansion of Millryang Plant 2, which will start operating in May next year, will have limitations in responding to future demand increases.

Accordingly, securities firms are continuously raising their target prices. Kiwoom Securities raised its target price from 800,000 KRW to 950,000 KRW. DS Investment & Securities also increased its target from 720,000 KRW to 850,000 KRW.

Park Sang-jun, a researcher at Kiwoom Securities, said, “By 2029, the company’s annual sales are expected to expand to about 3.5 trillion KRW, and operating profit to around 850 billion KRW. The economies of scale from increased sales volume and the expansion of high-priced regional sales proportions will sufficiently offset the burden of increased fixed and promotional costs.”

Jang Ji-hye, a researcher at DS Investment & Securities, said, “Exports to China remained solid due to the peak season effect, and exports to the U.S., which have a higher average selling price (ASP), increased, leading to expected growth in scale and improvement in gross profit margin (GPM).”

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