[Click e-Stock] Buldak Continues to Soar in Q2... Samyang's Performance on Solid Track

Exports to the US and China Remain Strong
Sauce Sales on the Rise... Miryang Plant 2 Operations a Positive Factor

Samyang Foods is expected to deliver results that exceed market expectations in the second quarter of this year. Exports to the United States and China remain robust, and the company is projected to gain further momentum when its second factory in Miryang begins operations next month.

On June 11, IBK Investment & Securities maintained its 'Buy' rating and target price of 1.45 million won for Samyang Foods, citing these factors. The previous day's closing price was 1,157,000 won.

For the second quarter of this year, consolidated sales are expected to reach 571 billion won and operating profit 138.7 billion won, representing increases of 34.5% and 55.1%, respectively, compared to the same period last year. Despite increased costs due to the US universal tariff, Coachella concert pop-up store marketing, and regular wage hikes, the company is maintaining solid performance.

Kim Taehyun, a researcher at IBK Investment & Securities, explained, "Export volumes have increased and the exchange rate effect has been favorable, while cost trends have remained stable. As a result, sales and operating profit are expected to surpass the market consensus of 541.6 billion won and 129.5 billion won, respectively."

Specifically, exports of noodles and snacks are projected to reach 454.5 billion won, up 41.2% from the same period last year. According to the Korea Customs Service, total ramen exports in April and May increased by 21.3%, with particularly strong growth in the United States (+42.8%) and China (+24.8%). The average KRW/USD exchange rate has risen to 1,416 won and the KRW/CNY rate to 195 won from April to the present, which is also a positive factor. Sales in Europe have also been confirmed to be favorable.

Monthly sales of sauces are also expected to nearly double to over 6 billion won. This is because production of Buldak sauce, previously only manufactured at the Wonju plant, began at the Miryang Plant 1 in March. Sauces have a higher profit margin than ramen. All production from the Miryang Plant 1 is exported, which is expected to further improve the company’s performance.

The scheduled start of operations at the Miryang Plant 2 in July is also a positive development. Currently, the Wonju and Miryang Plant 1 facilities are operating 22 hours a day, and the Iksan plant is running 23 hours a day, but supply remains tight.