Hana Securities evaluated Samyang Foods on the 29th, stating that "compared to global peers, its performance momentum is strong, but its valuation is low."
Samyang Foods recorded consolidated sales and operating profit of 385.7 billion KRW and 80.1 billion KRW, respectively, in the first quarter. Exports increased by 82.9% year-on-year to 289 billion KRW. North America and China led the company's performance improvement with year-on-year growth of 222.5% and 186.2%, respectively. The overseas ratio reached 75% as of the first quarter. The shares of North America and China were 26% and 32%, respectively.
This year, consolidated sales and operating profit are estimated at 1.5732 trillion KRW and 300.9 billion KRW, respectively. The overseas ratio relative to sales is expected to reach 77%.
Second-quarter consolidated sales and operating profit are estimated at 397.7 billion KRW and 76.3 billion KRW, respectively. According to the Korea Customs Service, ramen export value increased by 30.1% year-on-year in the first quarter and further rose by 46.8% in April compared to the same month last year. A similar trend is understood to have continued until mid-May. Additionally, the second quarter includes the 'China 6.18 Shopping Festival,' which is expected to exceed market expectations. It is judged that the short-term performance momentum within the industry is the greatest.
Sim Eun-joo, a researcher at Hana Securities, said, "The stock price has risen sharply in the short term," adding, "There is still room for valuation growth compared to global ramen companies Toyo Suisan and Nissin Foods." Samyang Foods also has a higher overseas sales ratio compared to the two companies in the peer group. In 2023, the overseas ratios of Toyo Suisan and Nissin Foods were 45% and 37%, respectively.
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