'Buldak Semiconductor' and 'Myeonvidia' are nicknames individual investors have given to Samyang Foods. These terms compare the steeply rising stock price of Samyang Foods to Nvidia. As the 'Buldak' series has driven performance, especially in overseas markets, Samyang Foods' stock price recently surpassed 1 million won. Currently, the only other stock in the Korean market trading above 1 million won is Samsung Biologics. The securities industry is increasingly interested in Samyang Foods, which has newly joined the ranks of 'Emperor Stocks,' with some raising their target price to 1.7 million won.

On May 12, Samyang Foods became an 'Emperor Stock' during intraday trading, and after announcing record first-quarter results, it hit an all-time high on May 15. Just a year ago, the stock was in the 300,000 won range, but on this day, it climbed to 1,233,000 won, entering the top 50 by market capitalization. Securities firms, which had set a target price of 1.3 million won, apologized for their earlier underestimation and raised their targets as high as 1.7 million won. As of the closing price on May 20, Samyang Foods maintained its Emperor Stock status at 1,144,000 won.

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In the first quarter, Samyang Foods posted sales of 529 billion won, up 37% year-on-year, and operating profit of 134 billion won, a 67% surge?both record quarterly results. After surpassing 300 billion won in overseas sales in the second quarter of last year, the company exceeded 400 billion won in overseas sales for the first time this quarter.

The key driver of these record results was exports. About 80% of Samyang Foods' total sales come from overseas. The recent rise in the won-dollar exchange rate allowed the company to benefit from foreign exchange gains when receiving export payments in dollars, which contributed to improved performance. While competitors like Nongshim produce some of their products overseas, Samyang Foods manufactures all its export ramen domestically. This means that even with the same sales volume, both revenue and profit increase more. Samyang Foods' sales, which stood at around 90 billion won in 2016, reached a record 1.3359 trillion won last year, achieving over 1 trillion won in overseas sales for the first time.

The 'Buldak' series is at the center of this performance. In 2014, the YouTuber 'Korean Englishman' posted a video of himself and friends eating Buldak Bokkeum Myeon, which went viral and sparked the so-called 'Buldak Bokkeum Myeon Challenge' worldwide, expanding exports to over 100 countries. In the United States, sales through major distribution channels such as Walmart, Costco, and Kroger increased, resulting in first-quarter sales of about 127 billion won, up 62% year-on-year.

There have even been reports apologizing for underestimating Samyang Foods' growth potential. Kim Taehyun, a researcher at IBK Investment & Securities, stated in a report titled "Sorry. We Underestimated It," that "According to Korea Customs Service data, ramen exports in April increased 24.5% year-on-year to 135.14 million dollars, maintaining solid growth," and added, "The positive impact of exchange rates is expected to continue into the second quarter, further boosting export performance."

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Samyang Foods' rapid growth is expected to accelerate further with increased production capacity. When the new Milyang Plant 2, scheduled for completion in the first half of this year, begins operations, the company's annual ramen production capacity will rise from 1.8 billion to 2.5 billion units. This will help alleviate supply shortages and strengthen efforts to target strategic markets such as North America and Europe. In addition, with the new plant in China set to begin operations in 2027, production capacity (CAPA) is expected to expand by 78% compared to current levels.

The stock outlook is also bright. After Samyang Foods posted record first-quarter results last week, securities firms simultaneously raised their target prices. IBK Investment & Securities (from 1.08 million won to 1.45 million won), Kiwoom Securities (from 1.2 million won to 1.4 million won), Hana Securities (from 1.1 million won to 1.35 million won), Kyobo Securities (from 1.02 million won to 1.33 million won), Yuanta Securities (from 1.1 million won to 1.31 million won), and Korea Investment & Securities (from 1.1 million won to 1.3 million won) all adjusted their target prices to over 1.3 million won.

Among them, Hanwha Investment & Securities set the highest target price at 1.7 million won. Han Yoojeong, a researcher at Hanwha Investment & Securities, explained in a report titled "Strong Buy" that "If Milyang Plant 2 becomes operational, volume will increase by 35% year-on-year, and sales growth is expected to exceed that due to changes in product mix. The effect of entering new channels such as Kroger in the US and Costco in Canada and Mexico, combined with increased production, is expected to accelerate growth."

Some have expressed concerns that the Trump administration's tariff war could disrupt exports to the United States, Samyang Foods' largest market. However, the securities industry believes the impact on performance will not be significant. Samyang Foods is proactively responding to tariff issues by forming an internal task force (TF) to review various countermeasures, including diversifying export regions and reducing costs.

In this regard, Kim Jinwoo, a researcher at Eugene Investment & Securities, analyzed, "If the US maintains a 25% reciprocal tariff after July, Samyang Foods' annual operating profit in 2025 is expected to decrease by about 3.8% compared to a scenario without tariffs. However, considering the strength of the Buldak brand and robust global demand, this is a manageable level."

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Joo Younghoon, a researcher at NH Investment & Securities, also predicted, "Although Samyang Foods does not have production facilities in the US, which could introduce tariff-related variables, given the low unit price of ramen and the strong loyalty of Buldak Bokkeum Myeon consumers, the impact on performance will not be significant."

The inclusion of Samyang Foods in the MSCI Korea Index on May 14 also supports expectations for further stock price increases. The MSCI Index is considered the most influential stock index in the world. Securities firms estimate that inclusion in the MSCI Standard Index will bring about 210 billion won in new inflows to Samyang Foods.

However, some point out that the recent stock rally has led to a burdensome rise in valuation. It also remains to be seen whether future performance will meet the market's heightened expectations.