WSJ: "Samyang Foods Up 1,600% in Three Years"
"'K-Pop Demon Hunters' Craze and U.S. Sales Expansion... More Gains Ahead"
"Oversupply and Trade Risks Remain as Uncertainties"
Samyang Foods, which has surpassed 1.5 million won per share and earned the title of "Emperor Stock," is drawing significant attention from global investors. Recently, The Wall Street Journal (WSJ) reported that, with the success of the Netflix animated film "K-Pop Demon Hunters," there is growing anticipation in the securities industry that Samyang Foods could secure a new growth engine. There is heightened interest in whether Samyang Foods can evolve beyond a simple ramen manufacturer to establish itself as a global food brand representing K-culture.
WSJ: "Samyang Foods, Korea's 'Myun-vidia'"
Fire Chicken Stir-fried Noodles are displayed at a large supermarket in downtown Seoul. Photo by Yonhap News Agency
On August 28 (local time), WSJ reported that "Fire Chicken Stir-fried Noodles appeared in the Netflix animated film 'K-Pop Demon Hunters,' driving Samyang Foods' stock price to an all-time high." The article particularly noted that the stock price has soared by an astonishing 1,600% over the past three years, and that investors are likening Samyang Foods to the American semiconductor company Nvidia, calling it "Myun-vidia." This comparison highlights that Samyang Foods' rapid and steep rise is reminiscent of Nvidia's rally.
Samyang Foods' stock price hit a five-year low of 77,300 won on November 2021, then began to rebound. As the "Fire Chicken Stir-fried Noodles Challenge" spread worldwide via social networking services (SNS), both sales and the stock price surged. On August 29, the intraday price reached 1,642,000 won, marking an explosive 2,024% increase in just four years. As of 3 p.m. on September 2, the stock is trading around 1.55 million won per share.
The Fire Chicken Phenomenon Driven by SNS and K-Content
Spicy challenge scene (left) from the Netflix animated film "K-Pop Demon Hunters" and a product photo of Carbo Buldak Sauce. Netflix · Samyang Foods
WSJ reported that Fire Chicken Stir-fried Noodles are fueling a global "spicy food challenge" craze on SNS, and have recently garnered renewed attention after appearing in "K-Pop Demon Hunters." In the film, the villain boy group "Saja Boys," who oppose the protagonist "Huntrix," take part in a variety show segment where they compete in a "spicy challenge" by eating hot sauce with the hosts. While the film does not explicitly mention Fire Chicken Stir-fried Noodles, the scene directly reflects the spicy food challenge trend that the noodles ignited.
Quoting domestic analysts, WSJ stated, "The K-pop cultural momentum is elevating Samyang Foods to a premium global brand, and this is being reflected in the company’s fundamentals." This means that Samyang Foods is not just a "ramen company," but is growing as a leading ambassador of Korean culture and a consumer goods company advancing alongside K-culture. WSJ also noted that, despite Samyang Foods' second-quarter revenue and operating profit falling short of market expectations, securities firms have raised their target prices for the company based on expanding sales in the United States and China.
However, WSJ pointed out that "Samyang Foods faces intensified competition in China, and oversupply could have a negative impact." The article also noted that "uncertainty over U.S. trade policy could pose additional headwinds." Furthermore, with Samyang Foods' stock entering the "golden stock range" (over 1 million won per share), there is speculation that investors' attention may shift to the company’s shareholder-friendly policies, such as dividends.
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