[Special Stock] Wuyang Conquers US Tables with Hot Dogs and Kimbap... 'The Second Samyang Foods'

Wuyang is showing strength. It appears that the stock price is being influenced by securities firms' analysis that the company will supply frozen gimbap to major U.S. supermarkets starting in the second half of this year. Following Samyang Foods' 'surprise performance' driven by the popularity of Buldak Bokkeum Myun overseas, attention is turning to the domestic food and beverage sector. Buying momentum seems to be spreading to food and beverage stocks with increasing export volumes.

As of 9:12 a.m. on the 24th, Wuyang is trading at 6,370 won, up 10.21% from the previous day.

Hyunjung Son, a researcher at Yuanta Securities, said, "Wuyang is expected to supply frozen gimbap to major U.S. supermarkets starting from the third quarter of this year. Currently, it is receiving simultaneous love calls from three major U.S. supermarkets, and it is highly likely to supply either private brand (PB) or own brand products."

He added, "In July and August, there are plans to launch frozen gimbap as an original equipment manufacturer (OEM) product in large domestic supermarkets. Wuyang's monthly production capacity (CAPA) for frozen gimbap is about 1.2 million units, securing the second-largest production capacity domestically." He continued, "The annual sales CAPA for frozen gimbap is estimated at approximately 20 billion won, with sales expected to exceed 10 billion won this year."

Researcher Son explained, "Frozen gimbap has recently led the K-food craze centered in the North American region, causing sold-out phenomena. Currently, there are three companies exporting frozen gimbap from Korea, with estimated monthly export volumes of about 2 to 3 million units."

He forecasted, "The export amount of frozen gimbap in April this year was about 6.05 million dollars, a sharp increase of 531.5% compared to the previous year. Due to the popularity of K-food, supply shortages are expected to continue."

Yuanta Securities expects Wuyang's sales and operating profit this year to reach 217 billion won and 10 billion won, respectively, representing increases of 13.4% and 669.2% compared to the previous year. He said, "The hot dogs supplied to Costco in North America last year will generate stable monthly sales from June onward after the initial six-month shipment is sold out. From the second half of the year, hot dog products are expected to be newly supplied to major U.S. supermarkets beyond Costco."

Researcher Son explained, "Despite being a latecomer, Wuyang has the advantage of efficiently increasing production CAPA compared to competitors due to reduced investment costs from securing land. As the only listed company producing frozen gimbap, it is expected that the benefits will be fully reflected."