[Click eStock] "Nongshim, Ongoing Overseas Growth... Target Price Maintained"

On the 15th, Korea Investment & Securities maintained its "Buy" rating and a target price of 510,000 KRW for Nongshim, stating that "the stock price is expected to trend upward as overseas performance is confirmed."

Nongshim Shin Ramyun displayed at a large supermarket in Seoul.

On the same day, Eunji Kang, a researcher at Korea Investment & Securities, said, "Although the temporary slowdown in growth of the North American subsidiary is regrettable, Nongshim is laying the groundwork for expansion into South America based on increased profit resilience," adding, "Since the company is actively expanding its business in other regions as well, expectations for future overseas growth remain valid."

She also stated, "Nongshim's first-quarter performance this year is expected to meet market expectations with sales of 912.3 billion KRW and operating profit of 66.8 billion KRW, representing increases of 6.0% and 4.9%, respectively, compared to the same period last year."

It is expected that the domestic business saw balanced growth in both noodles and snacks. Despite the economic downturn, noodles maintained solid demand through price competitiveness, and snacks likely saw increased shipments due to the successive success of new products.

Overseas business growth varies by country. Researcher Kang explained, "In North America, growth slowed due to the high base in the same period last year, and in China, growth decelerated due to changes in distribution channels. Australia and Vietnam likely achieved growth through the expansion of direct transactions. In Japan, growth continued centered on cup noodles."

She added, "The North American subsidiary is strengthening its market dominance by actively marketing to the Hispanic population in the U.S., who enjoy spicy flavors. This will also enable entry into the South American market," and further noted, "In China, growth can be confirmed as new online and offline distribution channels are completed from the second half of the year. Australia and Vietnam will be able to conduct more aggressive sales activities through the expansion of direct transaction ratios."