'S&D, Buldak Bokkeummyeon Partner, Doubles Corporate Value This Year on Success Story'

Exclusive Supplier of Key Ingredient for Buldak Sauce
Record-High Quarterly Results Expected in Q1 This Year
Share Price Hits All-Time High Alongside Long-Term Growth Prospects

While Samyang Foods paused just before becoming an "emperor stock," S&D's share price surpassed 100,000 won for the first time since its listing. The stock surged sharply on expectations of record-high quarterly results in the first quarter of this year.

According to the financial investment industry on May 9, S&D's share price has risen 122.9% so far this year. Even considering that the KOSDAQ index rose 7.6% during the same period, S&D's market outperformance stands at 115.3 percentage points. Institutional investors, who have accumulated net purchases of 7.8 billion won this year, have recorded a return of 51.1%. On the previous day, S&D's share price reached an all-time high of 101,000 won during intraday trading. Its market capitalization has grown to 285 billion won.

S&D is the exclusive supplier of the key ingredient for Samyang Foods' Buldak Sauce. Its main products include the core ingredient for Buldak liquid powder sauce as well as general functional food materials. As Buldak Sauce has established itself not just as a ramen sauce but as an independent hot sauce brand, S&D is gaining attention as a key partner rather than just a raw material supplier.

The spicy sauce market is rapidly growing in major markets such as the United States, Southeast Asia, and China. Last year, Buldak Sauce exports totaled $16.1 million, up 68% from the previous year. S&D's sauce-related sales also increased by 40% year-on-year in 2024.

Son Hyunjung, a researcher at Yuanta Securities, said, "When Samyang Foods' plant in China begins full-scale operations in 2027, local demand will increase further," adding, "From next year onward, S&D's profit growth rate will accelerate even more."

Along with long-term growth prospects, expectations for S&D's first-quarter performance this year are also rising. Lim Sanguk, a researcher at KB Securities, estimated that in the first quarter of this year, S&D recorded sales of 35.2 billion won and operating profit of 6.6 billion won, up 48% and 86% respectively from the same period last year. Lim explained, "Despite global recession concerns, S&D is likely to achieve record-high results this year, driven by increased ramen exports and the effects of capacity expansion," and added, "S&D continues to grow alongside Samyang Foods by exclusively supplying the key ingredients for both liquid and powder seasoning packets in the Buldak Bokkeummyeon series."

Samyang Foods' Buldak Bokkeummyeon has expanded its consumer reach by entering major retailers such as Walmart and Costco in the United States. Despite concerns about tariffs, favorable exchange rates and the possibility of price increases are also expected to be advantageous.

S&D invested 16 billion won to expand its factory and production facilities. The company expects this to increase its production capacity by 25 to 30% compared to its previous capacity.

S&D's financial structure is also very robust. As of the end of last year, its retention ratio stood at 3,253%, and its return on equity (ROE) was 25%. The company holds approximately 36.5 billion won in cash and cash equivalents and maintains a zero-debt management structure. Expectations for enhancing corporate value are also contributing to the rise in the company's valuation.