As of July 29, Samyang Foods' share price stood at 1,362,000 won, trading at a 12-month forward price-earnings ratio (PER) of 21 times. Although there is some short-term valuation pressure, the continued upward trend in quarterly export figures supports the view that a "buy and hold" strategy remains valid.
Eunju Shim, a researcher at Hana Securities, stated, "With the start of operations at the second Miryang plant in July, it is highly likely that export growth will continue in the third quarter compared to the previous quarter. Considering the plan to complete the China production base in early 2027, the effect of expanding CAPA will persist through next year and the year after. This translates to an annual production capacity increase of 25%." She added that, just as Orion's market capitalization jumped from 1 trillion won to 8 trillion won as exports to China grew significantly, Samyang Foods?now only in the second year of its stock price re-rating?can also be expected to see a continued upward trend in its share price over the medium term.
Samyang Foods' consolidated sales and operating profit for the second quarter are estimated at 537.7 billion won (up 26.7% year-on-year) and 125.8 billion won (up 40.6%), respectively. Shim explained, "Export growth is being sustained by deferred shipments stemming from US-China tariff issues and the ongoing policy of minimizing domestic inventory. Second-quarter exports are likely to increase by around 45 billion won compared to the previous quarter, but operating margins are expected to decline slightly due to brand reinforcement costs in China." With the second Miryang plant commencing operations as scheduled in July, accelerated global expansion driven by increased CAPA is also anticipated for the second half of this year.
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