[Click eStock] "Samyang Foods, Unit Price and Sales Volume Both Rise This Year... Target Price Up"

Target Price Raised by 17.3% Compared to Previous Level

On the 9th, KB Securities raised its earnings estimates for Samyang Foods this year and increased the target stock price from 750,000 KRW to 880,000 KRW. The investment rating was maintained as 'Buy.'

Ryu Eun-ae, a researcher at KB Securities, explained, "We are raising the target stock price by 17.3% compared to the previous estimate, reflecting adjustments to the 2025 applied exchange rate and upward revisions to the contribution estimates from the Miryang Plant 2."

Samyang Foods' fourth-quarter results last year are expected to exceed market expectations. Researcher Ryu analyzed, "Consolidated sales for the fourth quarter are expected to increase by 38.2% year-on-year to 451.5 billion KRW, and operating profit is expected to rise by 137.1% to 85.8 billion KRW, surpassing the consensus (average securities firm forecast) by 4.0% based on operating profit. Exports are projected to continue, centered on strategic countries and growth channels amid favorable exchange rates, resulting in export sales increasing by 57.6% to 342.6 billion KRW." Due to increased marketing expenses related to the 'Splash Buldak' campaign, the operating profit margin is expected to decline by 0.9 percentage points from the previous quarter to 19.1%.

KB Securities has revised upward its estimates for Samyang Foods' sales and operating profit this year by 7.6% and 1.3%, respectively, compared to previous estimates. Researcher Ryu stated, "The upward revision of sales estimates is expected because the operating rate of Miryang Plant 2 is anticipated to rise faster than expected, based on strong ramen demand centered in North America, and the improvement in average selling price (ASP) mix due to the expansion of North American and European shares will begin to appear in earnest. From 2025, the strategic countries will shift to focus on the U.S. and Europe, with ASP increases and sales volume growth occurring simultaneously." She added, "Operating profit margin improvement will be limited until the first half of the year when various costs related to the operation of Miryang Plant 2 are incurred, but it will show a significant upward trend after the third quarter when the operational effects appear."