[Click eStock] "Samyang Foods, Overseas Momentum Expands... Target Price ↓"

Target Price Lowered by 5% Due to Value Decline in Same Industry

Shinhan Investment Corp. forecasted on the 16th that Samyang Foods will continue to experience high growth for some time. However, due to a decline in valuation within the same industry, the investment opinion was maintained as 'Buy,' but the target price was lowered to 720,000 KRW.

Researcher Sanghoon Cho of Shinhan Investment Corp. stated, "Although the stock price rose 210% in the first half of the year due to strong export performance, there is still sufficient upside."

Researcher Cho analyzed, "In a situation where the quantitative limits of the domestic food and beverage market have become clear due to structural domestic consumption slowdown and demographic changes, Samyang Foods' export success serves as a model for food and beverage companies," adding, "After the completion of the Miryang Plant 2 by the end of May next year, a full-scale stock price increase is possible."

In particular, the operating rate of the Miryang plant increased from 61% in 2023 to 71.5% in the first quarter and 77% in the second quarter of this year. Researcher Cho explained, "It is encouraging that the gross profit margin increased by 10% compared to the previous year," and added, "Sales have continued to increase mainly in the U.S. and Europe, where unit prices are high, improving the regional mix."

He continued, "The recent stock price adjustment has significantly eased valuation pressure," and added, "We are at the beginning of an overseas momentum expansion phase."