[Click eStock] "Samyang Foods, Global Competitiveness... Analysis Initiated, Target Price 770,000 Won"

On the 24th, Korea Investment & Securities initiated coverage on Samyang Foods, presenting a target price of 770,000 KRW, citing its higher operating profit margin and growth compared to global competitors as positive factors.

Researcher Eunji Kang stated, "Samyang Foods' sales in 2024 are expected to increase by 33.5% year-on-year to 1.5926 trillion KRW, and operating profit is projected to rise by 116.3% to 319.1 billion KRW," adding, "It shows a significantly higher operating profit margin and steep growth compared to global competitors such as Nongshim, Toyo Suisan, and Nissin Foods."

Kang explained, "The U.S. ramen market is forecasted to grow at a compound annual growth rate of 6.0%, from 2.69 billion USD in 2023 to 3.6 billion USD in 2026," noting, "This is because Gen Z is becoming accustomed to spicy flavors through social media, and the Hispanic population that enjoys spicy food is increasing."

He also added, "Samyang Foods' recognition of Buldak Bokkeum Myun in the U.S. has risen through viral marketing on platforms like TikTok, and Gen Z's perception of spiciness is changing, resulting in the U.S. subsidiary's sales proportion increasing from 6.9% in 2022 and 13.4% in 2023 to 19.4% in the first quarter of this year."

The factory expansion to meet growing demand is also viewed positively.

Researcher Kang said, "Except for some Walmart and Costco stores, Samyang Foods has not yet entered major U.S. distribution channels, so after the operation of the Miryang Plant 2 in the first half of 2025, full-scale supply expansion will be possible," and forecasted, "After the completion of Miryang Plant 2, Samyang Foods' noodle and snack production capacity (CAPA) is expected to increase by about 38.2%, from 1.76 billion units to 2.43 billion units."