[Market Focus] Nongshim Jumps Over 7% on Expectations of Price Hike Effects Starting in Q2

On May 16, Nongshim showed strong performance in early trading. This came as securities firms raised their target prices, citing expectations that profitability will improve starting in the second quarter.

As of 9:15 a.m. on this day, Nongshim was trading at 448,000 won, up 33,000 won (7.95%) from the previous trading day.

Korea Investment & Securities released a report on this day, raising its target price for Nongshim from 450,000 won to 480,000 won.

Kang Eunji, a researcher at Korea Investment & Securities, stated, "From the second quarter, profitability is expected to improve through reduced promotional expenses, the effect of price increases, and renegotiation of raw material supply contracts. If the global launch of Shin Ramyun Tumba leads to increased overseas sales and further improvement in profitability, there is potential for additional upward revisions to performance estimates."

Securities firms that released reports on this day analyzed that Nongshim will begin to improve its earnings from the second quarter. Joo Younghoon, a researcher at NH Investment & Securities, said, "Nongshim's operating profit in the first quarter of this year declined compared to the same period last year, but from the second quarter, profitability is expected to recover through the effect of domestic product price increases. Overseas subsidiaries are also expected to show signs of recovery with new products."