[Click eStock] "Nongshim Thrives Domestically and Overseas... Limited Impact from Tariffs"

Achieved Results Surpassing 1Q Market Expectations
Price Increases Accelerate... Upward Momentum Anticipated from 2Q

Nongshim, which posted a surprise strong performance in the first quarter of this year, is expected to maintain solid results in the following quarters. The company has raised prices both in the domestic market and in the United States, and is seen as having ample growth momentum, including the overseas launch of the 'Shin Ramyun Tumba' product.

On the 16th, KB Securities maintained its 'Buy' investment rating and a target price of 520,000 won for Nongshim, citing these factors. The previous day's closing price was 415,000 won.

In the first quarter of this year, Nongshim recorded consolidated sales of 893 billion won and operating profit of 56.1 billion won. Compared to the same period last year, sales increased by 2.3%, while operating profit decreased by 8.7%. Nevertheless, operating profit significantly exceeded the market consensus of 52.5 billion won.

Overall, the company achieved solid sales performance. Third-quarter sales volume increased due to preemptive stockpiling demand ahead of the price hike. The Shin Ramyun Tumba, which was launched in the previous quarter, is estimated to have maintained a robust monthly sales level of around 5 billion won. Sales from overseas subsidiaries also rose by 2.9% year-on-year. In particular, the operating margin of the China subsidiary improved by 2.7 percentage points, which is seen as encouraging, thanks to the distribution agreement with Yubei.

There are also ample growth drivers for performance improvement after the second quarter. First, the domestic price increase will be fully reflected in selling prices. Shin Ramyun Tumba entered 1,000 Walmart stores in the United States last month and is scheduled to be launched at Costco in the LA area this month. In the third quarter, corporate sales in Europe?which currently accounts for 30% of exports?are expected to begin in June. A price increase for ramen in the United States is also likely to be implemented.

Ryu Eunae, a researcher at KB Securities, analyzed, "Not only does Nongshim have ample growth momentum, but the impact of tariffs and the strong dollar, which are increasing market uncertainty, is also limited. In addition, the Noksan export plant, scheduled to begin operations in the third quarter of next year, will further support the company's medium- to long-term overseas business expansion."