"Still Sold Out!" Factories in Overdrive... Target Price 1.9 Million Won, Emperor Stock Rally Continues [Weekend Money]

Global Excess Demand Continues
Performance Set to Rise as Supply Bottlenecks Ease

The global sold-out streak of Buldak Bokkeum Myeon shows no signs of stopping. Analysts predict that Samyang Foods’ performance will continue its steady upward trajectory.

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On May 23, Hyundai Motor Securities maintained its target price for Samyang Foods at 1.9 million won and its “Buy” investment opinion for this reason. The previous day’s closing price was 1,315,000 won. This is because global excess demand has once again been confirmed, and the company still possesses the most distinct overseas growth momentum within the food and beverage industry.

In the first quarter of this year, Samyang Foods recorded outstanding results that significantly exceeded market expectations. Sales reached 714.4 billion won, and operating profit was 177.1 billion won, up 35.0% and 32.2%, respectively, compared to the same period last year. This is the first time that quarterly sales have surpassed 700 billion won. The performances of the company’s subsidiaries in China and Europe greatly outpaced market expectations. The global excess demand for Buldak Bokkeum Myeon continues unabated.

Yonhap News Agency

In the first quarter, China reflected some impact from inventory adjustments, but strong inventory clearance during the Lunar New Year period and continued robust demand led to a recovery in performance. In the United States, a temporary reduction in export volumes to Canada and Mexico occurred due to inventory shortages in the first quarter, but U.S. export figures rebounded. In the second quarter, growth is expected to accelerate further with expanded promotional activities. Furthermore, the acceleration of growth in Europe is also seen as positive.

Production capacity expansion is also ongoing. In the first quarter of this year, the combined operation rate of the Milyang Plant (Plant 1 and Plant 2) for noodles rose to 82.3%. With the goal of maximizing operations at Milyang Plant 2 within the first half of the year, the company is focusing on improving productivity at existing plants and enhancing operational efficiency.

Ha Heeji, a researcher at Hyundai Motor Securities, predicted, “Currently, supply bottlenecks caused by global excess demand are also easing, and the pace of overseas growth is expected to accelerate even further.”

This content was produced with the assistance of AI translation services.