[Click e-Stock] "Nongshim, Potential for Overseas Sales Expansion... Stock Price Correction Is a Buying Opportunity"

Announcement of EB Issuance Plan for New Factory Construction

Hana Securities analyzed on the 3rd that the recent stock price adjustment of Nongshim is a buying opportunity. The investment opinion 'Buy' and the target price of 540,000 KRW were maintained.

Sim Eun-joo, a researcher at Hana Securities, stated, "We highly evaluate the potential for overseas expansion in the mid to long term," and added, "The recent stock price adjustment is a buying opportunity."

Nongshim announced last week the issuance of exchangeable bonds. The issuance is based on 300,000 treasury shares (4.93% of the issued shares), and the purpose is to raise funds for investment in export production facilities. Researcher Sim diagnosed, "The dilution scale is not large, and since it is an investment in facilities to expand global sales, it is positively evaluated in terms of enhancing corporate value in the mid to long term."

The new plant will be constructed on approximately 15,500 pyeong of idle land next to the existing Busan Noksan plant. The total investment amount is 191.8 billion KRW, and about 70% of the required funds will be raised through this exchangeable bond issuance. The plant is scheduled to start full-scale production from the second half of 2026. Researcher Sim anticipated that Nongshim will actively pursue global expansion after the establishment of the new plant.

Researcher Sim analyzed, "After completion, Nongshim's annual export production capacity (Capa) will increase from the existing 500 million units to 1 billion units (estimated effect of about 400 billion KRW increase)," and added, "It is expected to be easier to respond to the rapidly growing demand in the European market."

In the mid to short term, it is expected that penetration into South America will accelerate, leveraging the ample production capacity in North America. Researcher Sim predicted, "Starting with Mexico, as South American coverage expands, sales of the Americas corporation will also shift to a growth trend in the second half compared to last year," and added, "North America also plans to promote growth through new product launches in the second half."