[Click eStock] "Samyang Foods, Overseas Growth... Strong 1Q Earnings Expected"

On the 17th, LS Securities maintained its buy rating and target price of 1.1 million KRW for Samyang Foods, stating that "the company's first-quarter earnings this year are expected to meet the market consensus, supported by strong overseas business performance."

On the same day, Park Seong-ho, a researcher at LS Securities, said, "Despite the global consumption slowdown, the company maintained a solid growth trend."

Samyang Foods' consolidated sales for the first quarter are expected to reach 488.4 billion KRW, up 26.6% year-on-year, and operating profit is projected to increase by 29.3% to 103.6 billion KRW, resulting in an operating margin of 21.2%.

Researcher Park said, "The domestic segment showed some weakness due to the economic slowdown, but steady growth in the overseas segment continues. In particular, the U.S. subsidiary is expected to record a similar level to the previous quarter, supported by solid sales volume and favorable exchange rates." He also noted that although the Chinese subsidiary reflected the Lunar New Year effect in the fourth quarter, sales are expected to remain at a similar level to the previous quarter.

For the full year, consolidated sales are projected to increase by 27.4% to 2.2016 trillion KRW, and operating profit is expected to rise by 32.5% to 456 billion KRW, with an operating margin of 20.7%. The Millyang Plant 2 is anticipated to commence full-scale production as scheduled in the second half of the year, which is expected to contribute to growth in the European subsidiary.

Researcher Park added, "Although negative impacts from U.S. tariffs are inevitable, most of these can be offset by price competitiveness compared to local foods. However, the shift to a weaker U.S. dollar and a slowdown in U.S. consumption remain concerns."