[Market Focus] Nongshim Holdings Hits Record High on "Greater Upside Potential Than Nongshim" Assessment

Nongshim Holdings is showing strong performance in early trading.

As of 9:03 a.m. on September 15, Nongshim Holdings was trading at 96,600 won, up 9.77% (8,600 won) from the previous trading day. During the session, it surged to 99,500 won, setting a new 52-week high.

Recently, as Nongshim's stock price has soared due to the "Myeonvidia" (ramyeon + Nvidia) momentum, analysts in the securities industry have pointed out that the relatively undervalued holding company has even greater potential for growth, which appears to have stimulated investor sentiment.

Han Yoojeong, a researcher at Hanwha Investment & Securities, explained, "Nongshim Holdings is a pure holding company, with its main sources of income coming from dividends from subsidiaries and service and brand usage fees. However, its core affiliates, Nongshim and Yulchon Chemical, are not included as consolidated subsidiaries of Nongshim Holdings," adding, "Because the performance of these key subsidiaries is not directly consolidated and only flows in through dividends, a significant holding company discount has been applied to Nongshim Holdings."

Han continued, "Even if a 50% discount rate is applied to the value of Nongshim and Yulchon Chemical shares, which are not consolidated, the net asset value (NAV) of Nongshim Holdings as of the closing price on September 12 is 901.7 billion won, but the price-to-book ratio (PBR) of Nongshim Holdings is only 0.2 times." She added, "While the standalone net cash position and the rising corporate value of listed subsidiaries have continuously increased the net asset value, the stock price of Nongshim Holdings remains significantly undervalued compared to its fundamentals due to a lack of market attention."

원본보기 아이콘

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.