[Click e-Stock] "Nongshim Expected to Expand Overseas Sales... Target Price Raised"

Target Price Raised from 480,000 Won to 540,000 Won

On October 10, NH Investment & Securities announced that it expects Nongshim's overseas sales to expand and raised its target price from 480,000 won to 540,000 won. The investment opinion remains 'Buy'.

Ju Younghoon, a researcher at NH Investment & Securities, stated, "We have raised our target price by 13% compared to the previous figure, based on a valuation adjustment that reflects the growing global interest in ramen. Nongshim recently launched a K-Pop Demon Hunters collaboration product, which is significant as it marks a shift in Nongshim's previously conservative marketing strategy. The high growth rate in overseas sales is a factor for the valuation increase, so attention should be paid to the company's overseas performance in the fourth quarter."

Nongshim's third-quarter results this year are expected to be solid. Researcher Ju explained, "Nongshim's consolidated sales for the third quarter are projected to increase by 3% year-on-year to 875.7 billion won, and operating profit is expected to rise by 25% to 46.8 billion won, slightly exceeding the consensus (the average forecast of securities firms) in terms of operating profit. Domestic sales are expected to grow by 1% to 625 billion won, and with improved consumer sentiment, demand is showing improvement compared to the first half of the year. Although a temporary decrease in export volume is expected due to restructuring of global trading partners, a strong recovery is anticipated in the fourth quarter when considering deferred demand." He added, "Sales from overseas subsidiaries are expected to increase by 8% to 250.7 billion won, with growth driven by price hikes for products in the key market of the United States. The new product, Shin Ramyun Tumba, is also expanding its distribution channels, and sales volume is expected to increase toward the end of the year."