[Click eStock] "Samyang Foods, Excessive Stock Price Adjustment... A Buying Opportunity at Low Prices"

Kiwoom Securities evaluated on the 30th that Samyang Foods' stock price is excessively undervalued, presenting a buying opportunity at a low price.

Samyang Foods Exterior View

Kiwoom Securities experienced a correction of over 20% throughout August. The liquidation of yen carry trades increased stock market volatility, and the decline in the exchange rate along with weak exports in August influenced the stock price drop.

Analyst Park Sang-jun of Kiwoom Securities stated, "The stock price correction of Samyang Foods is excessive compared to the company's fundamentals," and forecasted, "The weakness in August is likely to be a temporary phenomenon."

Analyst Park added, "The export slump in August was due to temporary factors such as the seasonal off-season," and predicted, "Considering demand from China's National Day in October, Singles' Day in November, and Lunar New Year in January next year, exports are likely to rebound starting in September."

He also expressed optimism, saying, "North American exports are showing an increasing trend due to entry into major U.S. supermarkets and expansion of distribution networks in Mexico and Canada, and in Europe as well, the establishment of local sales corporations is likely to increase both average selling price (ASP) and sales volume."

He advised, "Although it is necessary to adjust performance expectations due to the decline in the exchange rate, considering the factory capacity expansion that can increase production volume by about 40% next year, it is advisable to utilize the recent stock price correction as a buying opportunity."