[Click eStock] "Samyang Foods, the Fastest-Growing Ramen Company in the U.S."

On May 29, Korea Investment & Securities raised its target price for Samyang Foods from 1.3 million won to 1.43 million won, stating that the operation of the second Miryang plant would further accelerate exports of Buldak Bokkeum Myun and help maintain high profitability. The investment opinion was maintained as 'Buy'.

Samyang Foods' estimated second quarter results are sales of 515.1 billion won (up 21.4% year-on-year) and operating profit of 129.6 billion won (up 44.9%). Kang Eunji, a researcher at Korea Investment & Securities, said, "If the production capacity of Buldak Bokkeum Myun increases with the operation of the second Miryang plant in July, even faster earnings growth is expected in the second half of the year." She projected, "When the second Miryang plant becomes operational, Samyang Foods' production capacity (CAPA) will increase by 35.6%, from 1.94 billion units per year to 2.63 billion units." She also diagnosed that if the export proportion of Buldak Bokkeum Myun rises, the average selling price (ASP) will increase, allowing high profitability to be maintained.

Samyang Foods is currently considered the fastest-growing ramen company in the United States. Kang noted, "As of the first quarter, Samyang Foods' distribution penetration rate in the U.S. was in the high 90% range at Walmart and around 50% at Costco, so after the second Miryang plant begins operation, we can expect to see both further mainstream penetration and an increase in sales per store." She forecasted, "Samyang Foods' market share in the U.S. ramen market is expected to rise from 9.5% in 2024 to 13.3% in 2025," maintaining Samyang Foods as the top pick within the food and beverage sector.