[Click eStock] Samyang Foods' Buldak Still Burning Hot

Full Operation of Miryang Plant No. 2 Resolves Supply Bottlenecks
Collaborations with Panda Express and Jollibee Expected to Boost Sauce Sales
Potential Price Hike in Response to U.S. Tariff Pressure

There are expectations that Samyang Foods' performance will trend upward, backed by expanded production capacity following the operation of its Miryang Plant No. 2.

On the 29th, Daishin Securities raised its target price for Samyang Foods by 11.8% to 1.9 million won, maintaining a "Buy" investment opinion, citing this background. The previous day's closing price was 1,597,000 won.

The previous day, Samyang Foods' stock price reached an all-time high of 1,642,000 won. The news that all six lines at Miryang Plant No. 2 (three for bagged noodles and three for cup noodles) began full-scale operations last month served as a positive catalyst.

As of this month, two out of the three bagged noodle lines at Miryang Plant No. 2 are operating on two shifts, while one is running on a single shift, with the utilization rate estimated at 40%. Starting next month, all bagged noodle lines are scheduled to operate on two shifts. By the end of the year, the goal is to have all three cup noodle lines also operating on two shifts.

The production capacity of Plant No. 2 is estimated at 690 million servings annually based on 20 hours of operation, and 830 million servings based on 23 hours. The combined production capacity of existing plants is said to reach up to 2.7 billion servings. The company is also constructing its first overseas production facility, aiming to start operations at the China plant (820 million servings) in the first quarter of 2027. As the overseas penetration rate of Buldak Bokkeum Myeon is rapidly increasing, there is potential for further expansion.

As supply bottlenecks for Buldak Bokkeum Myeon are gradually resolved in the second half of the year, the company is expected to better meet overseas demand. With expanded production capacity, Samyang Foods plans to increase the number of export countries and strengthen performance momentum through country-specific strategies.

Expanding sauce sales using the Buldak brand is also seen as positive. The company has signed an official collaboration agreement with the U.S. Asian restaurant brand Panda Express and plans to launch collaborative products with the Philippine restaurant brand Jollibee. These collaborative product launches are expected to further boost sauce sales.

Jung Hansol, a researcher at Daishin Securities, stated, "The heightened expectations can be sufficiently justified by the increased operating margin," and added, "To minimize the impact of U.S. tariffs in the second half of the year, a price increase is under consideration. Depending on the extent of the increase, profit estimates could be raised further."