[Featured Stock] Wuyang, Korean-style Hot Dog Searches on TikTok Reach 600 Million... Dominance of the No.1 Operator

Wuyang, the No. 1 company in the domestic hot dog OEM and ODM market share, is showing strong performance. Securities firms' analysis that sales will rapidly grow as hot dogs are exported to large North American supermarkets seems to be influencing the stock price. Wuyang holds about a 50% market share in the domestic ready-to-eat hot dog market, making it the leading player.

As of 9:27 AM on the 21st, Wuyang's stock was traded at 5,860 KRW, up 230 KRW (4.09%) compared to the previous trading day.

Jo Eun-ae, a researcher at Ebest Investment & Securities, explained, "Since the fourth quarter of last year, frozen hot dogs have been exported to a large Canadian supermarket chain," adding, "It is understood that the export region expanded to the United States in the second quarter of this year."

She continued, "The export products are priced relatively higher than domestic products, which is a factor in profitability improvement," and added, "The hot dog export amount from Seocheon, Chungnam in the second quarter of this year surged to $2.29 million, marking an all-time high."

Furthermore, she explained, "The Seocheon plant is a dedicated hot dog factory, and in 2021, its production capacity was expanded from 50 billion KRW to 140 billion KRW," and "It is understood that from April 2023, the plant reached the break-even point (BEP) performance due to increased operating rates."

She estimated, "This year's sales will reach 180 billion KRW, a 10% increase compared to the same period last year," and "An operating profit margin of 5% is achievable."

Researcher Jo said, "Based on TikTok and Google Trends, the popularity of hot dogs appears to be entering the early growth stage," and "Hot dog exports are expected to surge starting this year." She emphasized, "Considering the increase in exports to large North American supermarkets and the resulting profitability improvement, next year's sales could reach 200 billion KRW with an operating profit margin of 6%." She also advised, "It is necessary to pay attention to the possibility of corporate value level-up by confirming export performance figures every quarter."

She introduced, "On TikTok, the search volume for 'Korean corn dog' reaches 650 million views, and for 'Korean corn dog Costco,' it reaches 680 million views."