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Nongshim headquarters. (Photo=Nongshim) |
[Alpha Biz= Reporter Kim Sangjin] Hana Securities maintained a "Buy" rating and a target price of 540,000 KRW for Nongshim (004370), citing strong recovery both domestically and internationally. The stock's closing price on the previous day was 353,500 KRW.
Hana Securities estimated that domestic ramen sales will increase by 2.4% compared to the previous year, while annual export sales are expected to grow by 31.1%.
The firm also projected that Nongshim's overseas sales ratio will increase from 40% this year to 44% next year.
The increase in exports is expected to be driven by rising demand from Southeast Asia and Europe, while significant growth is anticipated for the North American subsidiary in the fourth quarter and into next year.
Hana Securities estimated that simply moving Nongshim products to Walmart shelves could drive a 10% increase in sales compared to the previous year. Additionally, they expected sales to rise by 17.6% next year due to expanded coverage in Latin America and the launch of new products like "Shinramen Toowoomba."
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
