[Click eStock] "Samyang Foods, Performance to Soar Upon Milyang 2nd Factory Operation"

Target Price Raised from 920,000 KRW to 1,100,000 KRW

Korea Investment & Securities has raised the target price for Samyang Foods from 920,000 KRW to 1,100,000 KRW, stating that performance growth is expected to continue in the first half of 2025 through an increase in export volume share and a rise in average selling price (ASP). The investment rating was maintained at 'Buy.'

Estimated ramen export value for Samyang Foods last month was 695.9 billion USD (approximately 100.4 trillion KRW), up 38.8% compared to the same period last year. The daily average ramen export amount based on business days also increased by about 70% to 38.7 billion USD (approximately 5.6 trillion KRW). Eunji Kang, a researcher at Korea Investment & Securities, said, "Considering the reduced number of business days due to the long Lunar New Year holiday, rapid growth is still ongoing," and added, "Samyang Foods once again demonstrated the potential for performance growth through an increase in the proportion of overseas sales in its Q4 results announced via a material disclosure."

As of Q4 last year, Samyang Foods' penetration rate in U.S. retail stores is estimated to be in the high 90% range for Walmart and around 50% for Costco. However, the lack of production capacity for Buldak Bokkeum Myun limits sales per store, which is seen as a drawback. Researcher Kang noted, "This is why even steeper performance growth is expected after the Milyang Plant 2 begins operation in the first half of 2025," and pointed out, "The quantity supplied per store will increase, leading to a rapid rise in the operating rate of Milyang Plant 2."