"Undervalued" Samyang Foods Picked at 1.4 Million Won Target Price... Surges to Blue-Chip Status on Earnings Surprise [Market Focus]

Securities Firms' Optimistic Forecasts Drive Stock Price Higher

Samyang Foods is showing strong performance in early trading. The company's stock price has been pushed up by a series of optimistic forecasts from securities firms following its impressive first-quarter earnings surprise.

As of 9:05 a.m. on May 16, Samyang Foods was trading at 1,123,000 won, up 13.32% (132,000 won) from the previous day. At one point during the session, the stock soared to 1,129,000 won, setting a new 52-week high.

Samyang Foods delivered a first-quarter earnings surprise that exceeded market expectations, and securities firms have responded by raising their target prices one after another, boosting investor sentiment. In the first quarter, Samyang Foods reported consolidated sales of 529 billion won and operating profit of 134 billion won, representing increases of 37.1% and 67.2%, respectively, compared to the same period last year.

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Kim Taehyun, a researcher at IBK Investment & Securities, stated, "Operating profit exceeded market expectations by 28% in the first quarter. The company has been undervalued," and raised the target price from 1,080,000 won to 1,450,000 won. Park Sangjun, a researcher at Kiwoom Securities, set a target price of 1,400,000 won, noting that the completion of the Miryang Plant 2 will enable the company to better respond to global supply shortages.