[Featured Stock] Nongshim Rises for 3rd Day on Price Increase... Recovers to 400,000 Won

Nongshim continued its upward trend for the third consecutive day, recovering its stock price to 400,000 KRW during trading.

As of 9:28 AM on the 7th, Nongshim is trading at 400,000 KRW, up 10,500 KRW (2.7%) from the previous day. This is the first time since the end of September that Nongshim's stock price has risen to the 400,000 KRW level during trading hours.

The expectation of improved earnings due to price increases is interpreted as the momentum behind the stock price rise. On the 6th, Nongshim announced that it would revert prices to the levels of June 2023 starting from the 17th. Previously, in July 2023, under government pressure to lower prices, Nongshim had reduced the prices of Shin Ramyun and Shrimp Crackers. Accordingly, the price of Shin Ramyun will increase from 950 KRW to 1,000 KRW at retail stores, and Shrimp Crackers will rise from 1,400 KRW to 1,500 KRW. Additionally, Nongshim decided to raise the ex-factory prices of 17 out of 56 ramen and snack brands by an average of 7.2%. This price increase is the first in two years and six months since September 2022.

IBK Investment & Securities raised its target price for Nongshim from 450,000 KRW to 500,000 KRW, expecting that the price increase effect on major products will begin to appear in earnest from the second quarter of this year and contribute to earnings improvement. Kim Taehyun, a researcher at IBK Investment & Securities, analyzed, "Considering that the sales proportion of products subject to the price increase is about 71% and that export products to Europe and Southeast Asia are excluded, this price increase is expected to increase domestic sales by approximately 78 billion KRW and operating profit by 27 billion KRW this year."