[Alpha Biz= Paul Lee] On July 21, LS Securities raised its target price for Samyang Foods from KRW 1.25 million to KRW 1.75 million, a 40% increase, applying a target price-to-earnings (P/E) ratio of 25.
LS Securities analyst Sung-ho Park explained, “Considering that global food and restaurant companies historically received over a 100% premium during periods of structural overseas expansion and high growth, a 25x multiple is reasonable.”
The brokerage firm highlighted the company's growth potential driven by the ramp-up of its second plant in Miryang.
“With the second Miryang plant contributing meaningfully to sales in the second half of the year, Samyang Foods is poised for another growth phase,” Park stated. “If sales to Europe increase through this facility, the average selling price (ASP) uplift effect could be sustained through 2026.”
He added, “By year-end, the utilization rate of the second Miryang plant is expected to exceed 20%.”
Park also noted that competitors in the U.S. market are currently seeing weak sales performance. “Despite the premium pricing of the Buldak brand relative to rivals, there is little concern about its ability to expand market share in the U.S. instant noodle segment,” he added.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
