[Click e-Stock] "Samyang Foods Stock to Rebound if U.S. Earnings Confirmed"

On January 8, Korea Investment & Securities maintained its "Buy" investment rating and target price of 2 million won for Samyang Foods.

Kang Eunji, a researcher at Korea Investment & Securities, stated, "Samyang Foods continues to demonstrate the most distinct overseas business growth and high profitability within the food and beverage sector. Despite the operation of its second plant in Miryang, the supply shortage of Buldak Bokkeum Myeon remains ongoing." She added, "If the robust earnings growth of the U.S. subsidiary is confirmed through the fourth-quarter results announcement, the stock price is also expected to rebound."

Since the fourth quarter of last year, Samyang Foods has implemented a price increase of approximately 10.0% in the United States to offset the impact of tariffs. Kang explained, "Due to ongoing inventory shortages, local distributors have not been able to secure significant stock, so the effect of the price increase will likely be reflected in earnings starting from the fourth quarter of 2025."

Kang further noted, "Although distributors have applied a higher consumer price increase rate than Samyang Foods' own price hike (14.0% at Walmart), sales volume of Buldak Bokkeum Myeon continued to rise quarter-on-quarter in the fourth quarter of last year, indicating that strong demand is being maintained."

Starting from July 2025, Samyang Foods began operating its second Miryang plant, increasing production capacity by 35.6%. When the China plant begins operations in early 2027, production capacity is expected to increase by an additional 43.0%. These calculations are based on a two-shift system operating 20 hours per weekday, and overall production capacity could increase even further if additional shifts are implemented in the future.

Kang projected, "The volume produced at the new plants will contribute to increased sales in highly profitable overseas markets such as the United States, Europe, and China, driving consolidated earnings growth." She forecasted that Samyang Foods' annual operating profit growth rates for 2026 and 2027 will be 34.2% and 33.2%, respectively.