[Alpha Biz= Paul Lee] Seoul, South Korea — July 9, 2025 — Korea Investment & Securities has raised its target price for Samyang Foods by 25.9% to KRW 1.8 million, citing strong export momentum in the U.S. and enhanced production capacity as key growth drivers.



The firm projected Samyang’s second-quarter revenue at KRW 538.9 billion and operating profit at KRW 130.6 billion, representing year-over-year increases of 27% and 46%, respectively.



Eunji Kang, an analyst at Korea Investment & Securities, highlighted that Samyang’s estimated average monthly ramen exports for April and May reached USD 87.5 million. "Although the average KRW/USD exchange rate slightly declined to 1,404 in Q2, the significant increase in export volume will lead to strong topline growth," she noted.



Kang expects additional growth from Samyang’s second plant in Miryang, which began full-scale operations in July. “The plant will supply Buldak Ramen to the U.S. and Europe starting in Q3, fueling further earnings momentum,” she said. “In Q1, limited supply in some U.S. and European channels capped revenue growth, so a strong rebound is anticipated.”



She reiterated Samyang Foods as her top pick in the food & beverage sector and raised her target price accordingly. “Compared to the 2014–2016 growth cycle of Nongshim in the U.S., Samyang’s 2024–2026 earnings trajectory suggests a stronger rerating potential,” Kang explained.



While Nongshim posted an average operating margin of just 4.3% during its growth phase, Kang noted that Samyang is expected to maintain a 22.8% average operating margin between 2024 and 2026—more than five times higher. She added that Samyang is also gaining U.S. market share at a faster pace.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]