On the 4th, IBK Investment & Securities analyzed that Samyang Foods' operating profit for the second quarter of this year is expected to exceed market expectations. The target stock price was raised from 460,000 KRW to 720,000 KRW.
Kim Taehyun, a researcher at IBK Investment & Securities, explained, "Samyang Foods is expected to have achieved consolidated sales of 377.4 billion KRW and operating profit of 92.1 billion KRW in the second quarter of this year," adding, "which represents an increase of 32.2% and 109.0%, respectively, compared to the same period last year."
He continued, "The market expectations were sales of 384.2 billion KRW and operating profit of 76.8 billion KRW," noting, "amid continued strong exports and declining costs, the effect of the won-dollar exchange rate increase was greater than in the first quarter."
He analyzed, "Exports are concentrated in the United States, China, and Europe," adding, "given the limited production capacity, the company is focusing on exports to the U.S. and European regions where prices and sales margins are high, while sales related to China's 618 shopping festival also contributed to steady sales performance."
Researcher Kim explained, "The Buldak Challenge has been spreading in the U.S. since the second quarter," confirming, "Carbo Buldak Bokkeum Myun supply has been so popular that it could not keep up with demand." He added, "The Walmart store penetration rate in the U.S., which was in the mid-80% range in the first quarter of this year, expanded to the low 90% range in May," and predicted, "By the end of this year, Buldak Bokkeum Myun will be available in all Walmart stores."
He expressed expectations, "When the Miryang Plant 2 is completed in the second quarter of next year, production capacity will increase by about 40% compared to the existing capacity," adding, "If high popularity is maintained, achieving sales of 2 trillion KRW by 2026 will be possible without difficulty."
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