[Click eStock] "Samyang Foods: Short-Term Correction Is an Opportunity"

On December 30, Hana Securities stated that Samyang Foods is expected to quickly offset rising fixed costs as the proportion of overseas sales, which have a relatively high average selling price (ASP), continues to grow. The company forecasted that operating margins could take another step up next year. The investment opinion remains 'Buy,' and the target price is maintained at 1.8 million won.

Samyang Foods' consolidated sales and operating profit for the fourth quarter of this year are estimated at 628.1 billion won (up 31.2% year-on-year) and 145.3 billion won (up 66.3% year-on-year), respectively. While quarterly export growth continues, domestic sales are also expected to increase compared to last year, aided by the new product 'Wooji Ramen,' which is contributing around 4 billion won per month.

However, according to November export data from the Korea Customs Service, exports to the Americas fell by 8.9% year-on-year and 11.6% month-on-month, reigniting concerns over short-term performance. Shim Eunju, a researcher at Hana Securities, commented, "Temporary production fluctuations were inevitable due to the extended holiday in October." She added, "It is worth noting that the gap between consolidated results and customs export data has widened since the establishment of the U.S. sales subsidiary."

Despite the recent share price decline due to concerns over short-term performance, Shim assessed that the trend of expanding global sales, driven by increased utilization at the Miryang Plant No. 2, remains intact. She noted, "All six production lines, including cup noodles, at the Miryang Plant No. 2 began operating from December." Based on this production capacity (CAPA) expansion, she estimated that overseas sales in 2026 will reach 2.5 trillion won, a 30.1% increase from the previous year.