Samyang Foods, Maker of Buldak Bokkeummyeon,
Target Stock Price Set at 1,000,000 KRW
With the global popularity of Buldak Bokkeummyeon driving a sharp rise in Samyang Foods' stock price last year, there are expectations that the upward trend will continue into the new year, with some securities firms even setting a target price of 1,000,000 KRW for Samyang Foods.
On the 17th, Samyang Foods closed at 762,000 KRW, up 8,000 KRW (1.04%) from the previous day on the KOSPI market. After an explosive increase of 226% last year, Samyang Foods' stock price has risen by over 3% so far this month (January 2 to January 17). According to FnGuide, Samyang Foods' sales for the fourth quarter are expected to increase by 33% year-on-year to 436.4 billion KRW, and operating profit is projected to rise by 129% to 83 billion KRW during the same period. With exports accounting for a large portion of total sales, the recent high exchange rate has been favorable for Samyang Foods. The overseas sales ratio, which was around 67% at the end of 2023, reportedly increased to 80% by the end of last year.
In fact, Samyang America, Samyang Foods' U.S. subsidiary, achieved sales of approximately 280 billion KRW (190 million USD) for the first to third quarters of 2024, a 126% increase compared to the previous year. Sales in the third quarter alone have already far exceeded the total sales for 2023 (about 160 billion KRW). Samyang Foods' strategy of conducting global marketing that directly reaches consumers and then naturally spreading through social networking services (SNS), along with strengthening placements in major retailers such as Walmart and Costco, has proven effective.
Additionally, after the recall in Denmark was lifted, events such as the annual 'Buldak Spicy Ferry Party' and the 'Splash Buldak' campaign, which attracted about 40,000 participants across five cities worldwide, received positive responses on platforms like TikTok and Instagram. Samyang Foods analyzed these as important factors contributing to the recent survey results.
Moreover, in December, Samyang Foods announced the establishment of a production subsidiary in China and plans to build a local factory to respond to the domestic Chinese market. The factory, with six production lines, is scheduled for completion in January 2027.
As a result, the securities industry's outlook on Samyang Foods has been repeatedly raised. Some securities firms have increased their target prices to over 900,000 KRW. Korea Investment & Securities raised its target from 770,000 KRW to 920,000 KRW, Hana Securities from 750,000 KRW to 900,000 KRW, and Kyobo Securities from 710,000 KRW to 920,000 KRW. In December, Hanwha Investment & Securities raised its target price by 25% from 800,000 KRW to 1,000,000 KRW, fueling expectations for Samyang Foods to join the ranks of 'Hwangjejeu' (stocks priced over 1,000,000 KRW).
Meanwhile, on the 16th, the global market research firm Numerator reviewed the brands loved by consumers over the past year and named Samyang as the number one "Top Brand Preferred by Generation Alpha" (those born from the early 2010s to mid-2020s). Numerator based the ranking on factors such as household penetration rate, sales growth rate, and social buzz volume, noting that Samyang Foods' influence on Generation Alpha was particularly prominent through social media and digital marketing. Other brands in the ranking included the popular U.S. tumbler 'Owala,' natural soap 'Dr. Squatch,' online game 'Fortnite,' and fruit ice cream 'Jonny Pops.'
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