[Click eStock] "Samyang Foods Eases Tariff Concerns with Buldak Price Hike"

On October 31, Korea Investment & Securities raised its target price for Samyang Foods from 1.8 million won to 2 million won, stating that the company's overseas business performance is expected to continue its rapid growth into 2026, making it the most attractive choice within the food and beverage sector. The firm maintained its "Buy" investment rating.

Samyang Foods recently raised the price of its Buldak Bokkeum Myeon to offset the impact of a 15% U.S. tariff. The company's supply price reportedly increased by about 10%, while Walmart is said to have raised the final consumer price by 14%.

Kang Eunji, a researcher at Korea Investment & Securities, commented, "The consumer price increase exceeding the supply price hike reflects retailers' view that consumer demand remains robust," adding, "With this price increase, most of Samyang Foods' tariff burden is expected to be passed on to consumers." Previously, Nongshim also implemented a double-digit price increase in the U.S. ramen market starting in July.

Despite the expansion of its second factory in Miryang, Samyang Foods is still experiencing a shortage in Buldak Bokkeum Myeon supply. As a result, volatility in export data by country has increased.

Kang emphasized, "Rather than worrying about a potential peak-out in specific countries due to short-term fluctuations in export data, we should focus on the rapid stabilization of the second Miryang factory and the upward trend in export volume. In the U.S., there is ample room for further penetration into the mainstream market and increased sales per store, while in China, the company continues to secure new clients."

She continued, "In 2026, the proportion of overseas sales is expected to rise further, and Samyang Foods is projected to maintain the most pronounced overseas business growth and high profitability in the food and beverage sector. With the recent stock price correction, the 12-month forward price-to-earnings ratio (PER) is trading at 17.4 times, which adds to its valuation appeal."