Ramen Export Unit Price 20% Higher Than Domestic
Exports to High-Price US and Europe Increase
Miryang Plant 2 Investment Scale Also Expanded
Q2 Earnings Forecast Revised Upward
Target Stock Prices Appear in 800,000 Won Range
Samyang Foods' stock price is soaring rapidly. Expectations of increased exports to the US and Europe have led to upward revisions of the Q2 earnings forecasts, driving the stock price to new highs.
According to the Korea Exchange on the 19th, Samyang Foods closed at 712,000 KRW, up 3.79% (26,000 KRW) from the previous trading day, surpassing the 700,000 KRW mark for the first time. On that day, foreigners and institutions drove the stock price by net buying 262.9 billion KRW and 117.7 billion KRW, respectively.
The stock price trend is remarkable. Over the past three months (March 18 to June 18), it surged 260.8% from 197,300 KRW to 712,000 KRW. The closing price first broke through 500,000 KRW on May 20, then 600,000 KRW on June 7, and finally exceeded 700,000 KRW on June 18.
The rise is underpinned by exports. As exports centered on the US and Europe have increased more sharply than expected, earnings forecasts have also been revised upward. The average selling price of exported ramen is about 20% higher than that for domestic consumption.
According to data from the Korea Trade-Investment Promotion Agency, the country with the highest ramen export price (per kg) is the United States (5.1 USD). Following are the United Kingdom 4.9 USD, Germany 4.6 USD, the Netherlands 4.5 USD, France 3.8 USD, China 3.4 USD, and Sweden 3.0 USD.
Shin Daehyun, a researcher at Kiwoom Securities, analyzed, "The strong Q2 exports are believed to be due to the normalization of China's online channels, entry into mainstream channels in the US and Europe, and Asian marts. The US and Europe, where Buldak Bokkeum Myun exports are rapidly increasing, have relatively high price levels compared to other regions, resulting in higher average selling prices and a favorable environment for increased demand for low-priced foods like ramen."
Accordingly, Samyang Foods' Q2 earnings estimates are steadily rising. FnGuide has compiled Samyang Foods' Q2 operating profit estimate at 76.8 billion KRW. Three months ago, the market forecast was 48.8 billion KRW. It was then revised up to 69.3 billion KRW (one month ago) and raised again. During the same period, the average target stock prices from securities firms were adjusted from 262,000 KRW to 445,000 KRW and then to 607,500 KRW.
As earnings expectations grew, Hanwha Investment & Securities was the first securities firm to raise Samyang Foods' target price from 710,000 KRW to 800,000 KRW on the 7th. Kiwoom Securities also raised it to 830,000 KRW (previously 660,000 KRW) on the 14th.
Previously, Samyang Foods announced that it would expand the investment scale of its Miryang Plant 2 from 5 lines to 6 lines. It is appropriate to revise upward the sales estimates in line with the increased facility capacity (CAPA). Han Yujeong, a researcher at Hanwha Investment & Securities, diagnosed, "If the annual average export volume increases by 22% from 2024 to 2026, Miryang Plant 2 will inevitably operate at full capacity. There is a high possibility of considering additional expansion after the completion of Miryang Plant 2."
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